Philippine annual inflation on track for government target as food prices ease

Philippine yearly inflation is predicted to remain within the government’s 2% to 4% target range in Q4, following a decrease in April due to reduced food prices. The consumer price index increased by 6.6% YoY in April, the lowest rate since August, and lower than the 7.0% predicted in a Reuters poll. As a result, the Bangko Sentral ng Pilipinas (BSP) may decide to delay interest rate hikes at its meeting on May 18, analysts said. The BSP has increased interest rates by 425 basis points to 6.25% since last May to combat inflation.

“We are on track to managing inflation to within target sometime in the fourth quarter, if not sooner,” said Finance Secretary Benjamin Diokno in a statement, as April’s slower inflation rate strengthens the case for the Bangko Sentral ng Pilipinas (BSP) to pause interest rate hikes at its May 18 meeting….