BSP sees April inflation to accelerate at 4.2% to 5%

Inflation or the rate of increase in the prices of goods and services is expected to accelerate further in April, the Bangko Sentral ng Pilipinas (BSP) said Friday.

“The BSP projects April 2022 inflation to settle within the range of 4.2 to 5.0%,” BSP Governor Benjamin Diokno said in a Viber message to reporters.

The latest central bank projection is faster than the 4.0% inflation rate recorded in March.

“Higher electricity rates in Meralco-serviced areas, increased domestic petroleum prices as well as higher meat and fish prices are the primary sources of inflationary pressures during the month,” Diokno said.

Meralco hiked its rate by P0.0625 per kilowatt-hour (kWh). bringing the overall rate for this month to P9.6467/kWh from February’s P9.5842/kWh.

The upward adjustment came after two consecutive months of power rate reductions.

The rate hike translates to an increase of around P13 in the total bill of a residential customer consuming 200 kWh.

“Inflation pressures will also emanate from positive base effects. These could be offset by lower prices of fruits and vegetables and the broadly stable peso,” Diokno said.

The BSP’s inflation forecast came days before the Philippine Statistics Authority releases official inflation figures on May 5, 2022.

“Looking ahead, the BSP will continue to monitor emerging price developments and possible second-round effects to help achieve its primary mandate of price stability that is conducive to balanced and sustainable economic growth of the economy,” Diokno said. —KBK, GMA News