THE Bangko Sentral ng Pilipinas (BSP) anticipates inflation for April 2025 to remain subdued, projecting it to settle within the range of 1.3 to 2.1 percent. The central bank attributes this optimistic outlook to easing prices across several key consumer goods.
Inflation in March stood at 1.8 percent from 2.1 percent in February.
According to the BSP, downward pressure on inflation during April stemmed from lower prices of essential food items such as rice, fish, fruits and vegetables. Favorable domestic supply conditions for these commodities played a significant role in this easing.
Additionally, the BSP noted that lower global oil prices and the recent appreciation of the Philippine peso against the US dollar further contributed to the downward price pressures.
However, the BSP also acknowledged potential offsetting factors that could partially counter these trends. These include the implementation of higher electricity rates and the increase in fares for the Light Rail Transit Line 1.
Looking ahead, the BSP emphasized its commitment to a measured approach in adjusting its monetary policy stance.
The Monetary Board, the BSP’s policy-making body, will continue to prioritize its price stability objectives while aiming to foster balanced and sustainable economic growth and employment in the Philippines. This suggests that while the current inflation outlook is positive, the BSP remains ready to respond to evolving economic conditions to ensure price stability in the medium term. / KOC