Prices of oil and its impact on power rates and some commodities are seen to push the domestic inflation rate for April 2022 between 4.2 to 5 percent.
Another source of price pressure during the past month is the positive base effect, referring to the 4.5 percent inflation rate in April last year.
“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,” the Bangko Sentral ng Pilipinas (BSP) said in a statement on Friday.
BSP said the positive base effects “could be offset in part by lower prices of fruits and vegetables and the broadly stable peso”.
“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 growth of the economy,” the BSP added.
Monetary authorities forecast an acceleration of inflation, given the upticks in the prices of oil and some commodities in the international market.
BSP’s policy-making Monetary Board, during its rate-setting meet in March, hiked the central bank’s average inflation forecast this year to 4.3 percent from 3.7 percent and the 2023 forecast to 3.6 percent from 3.3 percent.
The rate of price increases accelerated to 4 percent in March from the previous month’s 3 percent.
Average inflation in the first quarter this year stood at 3.4 percent, still within the government’s 2-4 percent target band.
Source: Philippines News Agency
