Inflation Expected to Surge Up to 4.5% in May — BSP

MANILA – The prices of consumer goods and services are projected to continue rising for the fourth consecutive month in May, potentially exceeding the government’s target range of 2% to 4%.

In its latest inflation forecast, the Bangko Sentral ng Pilipinas (BSP) anticipates that May’s inflation rate could land between 3.7% and 4.5%. The upper end of this forecast surpasses the government’s inflation ceiling and is higher than April’s inflation rate of 3.8%.

“Continued increases in electricity rates and vegetable prices, coupled with the recent depreciation of the peso, are the primary drivers of inflation this month,” the BSP stated.

However, the BSP also noted that lower prices of rice, fish, and fruits, along with reduced domestic oil and LPG prices, could help counterbalance these upward pressures.

Looking ahead, the BSP emphasized its commitment to closely monitoring factors affecting inflation and economic growth, adhering to a data-driven approach in its monetary policy decisions.