MANILA – Improvement in the supply of some food items is seen to benefit the Philippines' April 2021 inflation rate, which the Bangko Sentral ng Pilipinas (BSP) forecasts to range between 4.2-5 percent.
In a Viber message to journalists Friday, BSP Governor Benjamin Diokno said downside price pressures for the month came from “lower prices of domestic petroleum products and key food items, such as fruits and vegetables due to improved supply conditions.”
He, however, noted that these factors “could be partly offset by upward adjustment in Meralco electricity rates, coupled with higher prices of pork, fish, and rice.”
“Moving forward, the BSP will continue to monitor evolving economic and financial conditions to ensure that the monetary policy stance remains consistent with BSP’s price stability mandate,” he added.
The rate of domestic price increases slowed to 4.5 percent last March after a five-month rise until last February.
Average inflation in the first quarter this year stood at 4.5 percent, surpassing the government’s 2-4 percent target band until 2023.
Monetary authorities forecast average inflation this year to be at 4.2 percent, with the monthly figure seen to remain elevated until the third quarter of the year. (PNA)
