BSP: Inflation likely to remain above target in May

Inflation is likely to have settled above the government's target for the fifth consecutive month in May, the Bangko Sentral ng Pilipinas (BSP) said Monday.

According to BSP Governor Benjamin Diokno, the central bank's point inflation projection for May is 4.4%, and will likely settle within the 4.0% to 4.8% range.

The central bank targets inflation between 2% to 4%, and expects a slowdown in the coming months

Inflation clocked in at 4.2% in January, 4.7% in February, and 4.5% for both March

"Higher prices of meat and domestic petroleum products along with the upward adjustment in Meralco electricity rates are the main sources of upward price pressures for May," Diokno said in a mobile message to reporters.

Latest data available from the Department of Agriculture (DA) shows that prevailing prices of pork ham (kasim) were at P350 and pork belly (liempo) at P380 as of Friday, May 28.

Meanwhile, the Manila Electric Co. (Meralco) increased its household rates by 18.53 centavos per kilowatt-hour to P8.5920/kWh from P8.4067/kWh in April.

"These could be offset by the decline in prices of key food items, such as rice, vegetables and fish, due to improved supply conditions, along with the appreciation of the peso," Diokno said.

"Moving forward, the BSP will remain watchful of economic and financial developments to ensure that the monetary policy stance remains consistent with the BSP's price stability mandate," he added. — RSJ, GMA News