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BSP eyes May ’22 inflation between 5-5.8%

By Joann Villanueva

May 31, 2022, 8:24 pm

<p>Bangko Sentral ng Pilipinas Governor Benjamin Diokno <em>(Photo from BSP)</em></p>

Bangko Sentral ng Pilipinas Governor Benjamin Diokno (Photo from BSP)

MANILA – Rate of price increases for May 2022 is seen to further accelerate to between 5 and 5.8 percent after surpassing the government’s 2-4 percent target band last April due to continued oil price increases.

“The continued increase in domestic petroleum prices, higher prices of key food items, and peso depreciation are the primary sources of inflationary pressures during the month,” Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno told journalists in a Viber message on Tuesday.

These factors are, however, seen to be countered partly by drop of power rates in areas being serviced by the Manila Electric Company, the decline in liquified petroleum gas prices, and lower rice prices, he said.

“Looking ahead, the BSP will continue to closely monitor emerging price developments to enable timely intervention to arrest emergence of further second-round effects, consistent with BSP’s mandate of price and financial stability,” he added.

Inflation rate last April surged to 4.9 percent from the previous month’s 4 percent because of the sustained hikes in the prices of oil in the international market due partly to the impact of the Russia-Ukraine war.

Monetary authorities project inflation to continue to rise in the coming months but to decelerate to within-target levels by the second quarter of 2023. (PNA)

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