INFLATION is projected to have hit a fresh three-year high this month as prices of basic goods continued to increase, the Bangko Sentral ng Pilipinas (BSP) said Thursday.

Outgoing BSP Governor Benjamin Diokno said inflation is likely to settle within the 5.7-6.5 percent range in June, with the lower end already higher than the three-year high of 5.4 percent recorded in May.

A 5.7 percent inflation would be the highest since the 5.2 percent the country recorded in December 2018, while 6.5 percent would be the highest since the 6.9 percent in October 2018.

“The continued increase in domestic oil prices, upward adjustments in electricity rates, higher prices of key food items, and peso depreciation are the primary sources of inflationary pressures during the month,” Diokno said in a statement.

On Tuesday, oil firms implemented another round of price hikes to mark the fourth straight week of increases for gasoline, and fifth for both diesel and kerosene.

“Looking ahead, the BSP will continue to monitor closely emerging price developments to enable timely intervention to arrest emergence of further second-round effects, consistent with BSP’s mandate of price and financial stability,” Diokno added.