BSP expects May inflation to cool down further to 5.8% or stay at 6.6%

The Bangko Sentral ng Pilipinas (BSP) is expecting inflation to continue its downtrend in May or remain at the same level as the previous month amid lower fuel, food, and utility prices.

In its month-ahead forecast, the BSP said it expects inflation —the rate of increase in the prices of goods and services— to clock in within the range of 5.8% to 6.6%.

The upper end of the central bank’s forecast range is the same level as April’s 6.6% inflation print.

“The cumulative rollback in domestic petroleum prices as well as lower poultry and fish prices and electricity rates of various regional power distributors could lead to lower inflation in May,” the BSP said.

However, the central bank said upward price pressures would come from higher prices of rice, vegetables, and other key food items as well as the increase in liquefied petroleum gas (LPG) and Meralco electricity rates.

“Going forward, BSP will continue to monitor developments affecting the outlook for inflation and growth in line with its data-dependent approach to monetary policy formulation,” it said.

The Philippine Statistics Authority is set to release official inflation rate figures for May on June 6.—AOL, GMA Integrated News