MANILA – Higher domestic oil prices and uptick in the price of several agricultural products due to Typhoon "Ambo" (Vongfong) are seen to affect the Philippines' May 2020 inflation rate, which is projected to range between 1.9-2.7 percent.
In a Viber message to journalists Friday, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said the point inflation projection for this month is 2.3 percent, slightly higher than the 2.2 percent last April.
The uptick in the prices of oil and some agricultural products are seen to be countered by the drop of electricity rates in areas being serviced by the Manila Electric Company (Meralco) “despite the reported increase in the total electricity bill due to higher consumption”.
“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,” he added.
Inflation last April posted a slower growth from month-ago’s 2.5 percent, bringing the average rate for the four-month period to 2.5 percent.
The BSP forecasts inflation to average at two percent this year, the lower end of the government’s two to four percent target band until 2022.
Next year, inflation is seen to average at 2.5 percent. (PNA)
