The Bangko Sentral ng Pilipinas said Friday inflation in April likely eased to as low as 6.3 percent from 7.6 percent in March on lower electricity rates and prices of some food items.
The BSP expects the April inflation to settle within a range of 6.3 percent to 7.1 percent.
“Lower electricity rates, the decline in prices of fish and vegetables, and rollback in LPG prices contributed to easing price pressures during the month,” the BSP said.
Meanwhile, upward price pressures are expected to emanate from higher domestic petroleum prices, increased rice and meat prices and peso depreciation, it said.
“Going forward, the BSP remains prepared to respond appropriately to continuing inflation risks in line with its data-dependent approach to monetary policy formulation,” it said.
The government is set to release the April inflation data on May 5.
Inflation averaged 5.8 percent last year, surpassing the target range of 2 percent to 4 percent. It reached a 14-year high of 8.7 percent in January before easing to 8.6 percent in February and 7.6 percent in March. Despite the slowdown, inflation remained elevated and one of the stickiest in the region.
The National Economic and Development Authority said timely and enough importation is one of the short-term measures to manage food inflation in the country.
NEDA Undersecretary Rosemarie Edillon said during the Inter-agency Committee on Inflation and Market Outlook meeting on April 20 that importation would fill the domestic supply shortfall of basic goods.
Other measures proposed by NEDA are the prepositioning of rice buffer stocks during El Niño; strengthening the implementation of biosecurity and hog repopulation programs; improving and expanding the Kadiwa program to directly connect producers and consumers; and fast-tracking the distribution of targeted subsidies to farmers and fisherfolks.
Edillon said import decisions should take into account the expected lean domestic production period and estimated transit time of commodities from the source country to address the domestic supply gap.
NEDA also presented three medium-term measures to manage food inflation. These are boosting the productivity and resiliency of the local agriculture sector; promoting private investment in facilities, transport, and logistics systems to bring safe and nutritious food closer to consumers; and pushing for the passage of critical reforms such as the Livestock, Poultry and Dairy Competitiveness and Development Act.
President Ferdinand Marcos Jr. approved the creation of the IAC-IMO in a sectoral meeting on March 7, 2023 as a proactive measure to fight inflation. It serves as an advisory body to the Economic Development Group on measures that will keep inflation, particularly on food and energy, within the government’s target range.
The IAC-IMO is chaired by the National Economic and Development Authority and co-chaired by the Department of Finance, while the Department of Budget and Management serves as the vice chairperson.
Members of the committee include the Department of Agriculture, Department of Energy, Department of Science and Technology and Department of Trade and Industry. The DOF also serves as the committee’s secretariat.