BSP sees May inflation at 1.9-2.7%

Inflation rate is likely to accelerate in May on the back of higher oil and agricultural commodities’ prices, the Bangko Sentral ng Pilipinas (BSP) said Friday.

“The BSP Department of Economic Research projects May 2020 inflation to settle within the 1.9 – 2.7% range,” the central bank said.

The higher end of the projected range is faster than the 2.2% inflation rate recorded in April.

“Higher domestic oil prices as well as the uptick in the prices of various agricultural products due to supply bottlenecks and the impact of typhoon Ambo contributed to positive price pressures during the month,” the BSP said.

“Meanwhile, the electricity rates in Meralco-serviced areas declined during the month despite the reported increase in the total electricity bill due to higher consumption,” it said.

Meralco slashed power rates by P0.2483 per kilowatt-hour (kWh) this month, resulting from lower demand amid the enhanced community quarantine in Metro Manila. 

Meralco customers, however, complained of “bill shock” for the unusually high May billing. The Energy Regulatory Commission has since ordered the power distributor to conduct actual meter readings and issue new bills.

“Moving forward, the BSP will remain watchful of economic and financial developments, and stand ready to take necessary policy actions to ensure the delivery of its primary mandate of price stability,” the central bank said. —LDF, GMA News