MANILA -- Lower oil prices made Philippine monetary officials consider further slowdown of rate of domestic price increases with the June 2015 level seen between 1.1-2.0 percent.

In a text message to reporters, Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr. said the forecast range for the sixth month this year was made after noting lower prices of diesel, kerosene, and liquified petroleum gas (LPG).

He said the drop in power rates of the Manila Electric Company (Meralco) is another factor in the low inflation forecast.

However, the central bank chief said these factors may be countered by higher prices of rice, gasoline and tuition fee, with June being the start of the school year for elementary, high school and most college students.

"Moving forward, the BSP will remain watchful of developments in price pressures and stands ready to undertake policy action to help ensure price and financial stability," he added.

Last May, inflation fell to a record-low of 1.6 percent from month-ago's 2.2 percent.*PNA

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