BSP: Inflation likely to settle within 4.2 to 5% range

The Bangko Sentral ng Pilipinas (BSP) is projecting the inflation rate to still exceed the government’s target band in April.

“The BSP projects April 2021 inflation to settle within the range of 4.2% to 5.0%,” BSP Governor Benjamin Diokno told reporters in a Viber group message.

The central bank’s projection settles above the government’s ceiling of 2% to 4%.

“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 downside price pressures during the month,” Diokno said.

“However, these could be partly offset by upward adjustment in Meralco electricity rates, coupled with higher prices of pork, fish, and rice,” he said.

The Philippine Statistics Authority is set to announce the April inflation figures on May 5.

“Moving forward, the BSP will continue to monitor evolving economic and financial conditions to ensure that the monetary policy stance remains consistent with the BSP’s price stability mandate,” the central bank chief said. -MDM, GMA News