BSP sees April inflation at 5.6% to 6.4%

Philippine inflation likely quickened to between 5.6% to 6.4% in April, driven by soaring prices of fuel, electricity and food, as well as the weak peso, the Bangko Sentral ng Pilipinas (BSP) said on Tuesday.

In its month-ahead inflation forecast, the BSP said inflation likely accelerated in April, from the 1.4% clip a year ago and 4.1% in February.

“Inflation risks have intensified amid upward price pressures from significantly higher domestic petroleum prices, rising prices of key food items such as rice, fish, and meat, increased electricity charges, and the peso depreciation,” it said in a statement.

At the upper end of the forecast, inflation may have accelerated to its fastest pace in three years, or since the 6.6% in April 2023.

At the bottom end, inflation would be the fastest print in over two years, or since the 6.1% clip in September 2023.

“The anticipated decline in vegetable and fruit prices may help temper inflation, but sources of upside price pressures continue to warrant close monitoring,” it said.

The BSP said it will stay vigilant and continue to monitor recent developments in the Middle East for their impact on inflation and economic activity. — Justine Irish D. Tabile