INFLATION may settle somewhere between 3.7 and 4.5 percent in May, the Bangko Sentral ng Pilipinas (BSP) said Friday, May 31.
The BSP said higher electricity rates and vegetable prices have driven prices upward. The depreciation of the peso also has an effect on prices, as it makes imports more expensive, the BSP said.
But lower rice, fish, and fruit prices, as well lower oil and liquefied petroleum gas (LPG) prices may offset the spike in costs.
Inflation quickened in April to 3.8 percent, mainly due to costlier vegetables and fish, as well as higher pump prices of petroleum products.
According to the Philippine Statistics Authority (PSA), price growth in April was faster than the 3.7 percent recorded in March. But it remained within the Bangko Sentral ng Pilipinas’ (BSP) 2 to 4 percent target range for the fifth consecutive month, defying expectations of an above-target reading.
The April 2024 reading was also lower than the 6.6 percent in the same month last year.
The top three commodity groups contributing to the April 2024 overall inflation were: food and non-alcoholic beverages, restaurants and accommodation services, and transport. (ABS-CBN News)
