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BSP: May inflation remains elevated

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Inflation for the month of May could remain elevated, hovering above the upper end of the government’s 2 to 4 percent target, the highest monetary authority in the land said.

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said that they are looking at 4.4 percent inflation for the month, the midpoint of their latest outlook amid higher meat and oil prices.

 

“The BSP projects May 2021 inflation to settle within the range of 4 to 4.8 percent. 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 explained.

According to him, such could be tempered by the decline in key food items like rice, vegetables and fish amid the improvement in supply conditions along with the strengthening of the local unit.

Still, the BSP chief reiterated their commitment to remain vigilant for both economic and financial developments to ensure that the monetary policy stance remains consistent with the central bank’s price stability mandate.

The BSP earlier revised its full year inflation outlook from 4.2 percent to just 3.9 percent, a tad lower than the upper end of the government’s target.

Various private sector economists likewise penciled a higher inflation outlook for the month with above-4 percent level projections but below the 4.7 percent in February, which is considered as this year’s peak for such.

 

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