The May 2024 inflation of 3.9 percent is within the BSP’s forecast range of 3.7 to 4.5 percent. The inflation outturn is consistent with the BSP expectations that inflation could temporarily accelerate above the target range over the near term due to adverse weather conditions on domestic agricultural output and positive base effects. Nonetheless, the BSP expects average inflation to return to the target range for full year 2024 and 2025.
The risks to the inflation outlook continue to lean toward the upside. Possible further price pressures are linked mainly to higher transport charges, elevated food prices, higher electricity rates, and increase in global oil prices.
Looking ahead, the Monetary Board will consider the latest inflation outturn in its upcoming monetary policy meeting on 27 June 2024. The BSP also continues to support the National Government’s non-monetary measures to address supply-side pressures on prices and sustain the disinflation process.