May inflation seen to quicken as fast as 4.5% —BSP

Consumer goods and services prices are seen to continue its acceleration streak for the fourth straight month in May, even breaching the government’s target range of 2% to 4%.

In its month-ahead inflation forecast, the Bangko Sentral ng Pilipinas (BSP) projected that inflation in May might settle within the 3.7% to 4.5% range.

The upper of the BSP’s estimated inflation print —the rate of increase in the prices of goods and services — also overshoots the government’s ceiling.

It is also faster than April’s 3.8% inflation rate. 

“Continued increases in electricity rates and vegetables prices alongside recent peso depreciation are the primary sources of upward price pressures for the month,” the BSP said.

“Meanwhile, lower prices of rice, fish, and fruits as well as lower domestic oil and LPG prices could offset the upside price pressures,” the central bank said.

Moving forward, the BSP said it will continue to monitor developments affecting the outlook for inflation and growth in line with its data-dependent approach to monetary policy decision-making.—AOL, GMA Integrated News