Bangko Sentral ng Pilipinas Governor Benjamin Diokno said Friday inflation in April likely slowed to as low as 4.2 percent from 4.5 percent in March on lower food and petroleum prices.
Diokno said in a message to reporters the April inflation likely settled within a range of 4.2 percent to 5 percent.
“Lower prices of domestic petroleum products and key food items, such as fruits and vegetables due to improved supply conditions, are the main sources of downward price pressures during the month,” Diokno said.
These, however, could be partly offset by upward adjustment in Manila Electric Co.’s electricity rates, coupled with higher prices of pork, fish and rice.
Inflation in March eased to 4.5 percent from 4.7 percent in February after five consecutive months of acceleration, on lower annual increases in food and non-alcoholic beverages.
Despite the slight slowdown, the March inflation remained the second fastest in the last 27 months. This was also faster than 2.5 percent a year ago and brought the first-quarter average to 4.5 percent, above the government’s 2021 target range of 2 percent to 4 percent.
Diokno earlier said monetary authorities were ready to implement necessary actions to make sure that inflation rate would remain manageable in the coming months.
The BSP said in its first-quarter inflation report that the Monetary Board kept a close eye on rising inflationary pressures amid the continuing need for policy support to facilitate the recovery of the economy.
Inflation averaged 2.6 percent in 2020, within the government’s target range.