Bangko Sentral ng Pilipinas governor Amando Tetangco Jr. estimated yesterday that prices may have risen on average of 2.9 percent, higher than May’s average of 2.4 percent.

The faster increase in prices would be triggered by higher oil and food prices and higher tuition fees.

Tetangco said inflation environment remains "favorable."

Consumer prices rose by 2.4 percent year on year in May, slightly accelerating from 2.3 percent in April, as the impact of high oil prices kicked in.

Consumer prices rose by an average of 2.7 percent through May with core inflation, which excludes sensitive food and energy items, at 2.9 percent.

The BSP is expecting inflation to be below four percent this year, or off its target of 4-5 percent as improving peso, BSP officials said, would help dampen the impact of high oil prices.

The BSP on May 10 began siphoning off excess liquidity by expanding the coverage of its special deposit account, previously reserved for banks, to ward off inflationary pressures.

BSP deputy governor Diwa Guinigundo said the mopping-up operation has been "quite effective" although he declined to detail how far it has gone.