BSP projects April 2024 inflation between 3.5% to 4.3%

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) expected that the country's inflation rate for April 2024 will fall within the range of 3.5% to 4.3%.

In a press release on Tuesday, the central bank attributed the possible uptick in inflation to the continued increases in food prices, particularly rice and meat.

The BSP also pointed out higher gasoline prices and peso depreciation as this month’s upward inflation pressures. 

During the first three weeks of April, oil firms implemented a price hike on gasoline.

Over the past two weeks, gasoline prices have declined over the past two weeks.

Lower prices of fish, fruits and vegetables, which are also classified under “food prices” may “offset the upside price pressures,” according to the BSP.

Lower electricity rates and rollback in the prices of liquefied petroleum gas can also contribute to the mitigation of inflation uptick. 

Meralco announced on April 8 that it would reduce its power rates this month due to a decrease in the generation charge from Independent Power Producers (IPPs) and Power Supply Agreements (PSAs).

LPG distributors also implemented a price rollback this month. 

The central bank’s low-end prediction of the inflation rate is a slight decline from the 3.7% inflation print in March 2024. 

On the other hand, the high-end prediction is a slight uptick from last month’s inflation numbers. 

To mitigate the upward trend in the country's inflation, the BSP's Monetary Board opted to maintain its target reverse repurchase rate at 6.5% during its meeting on April 8. The decision marks the fourth time the rate has remained unchanged since the off-cycle policy meeting in October 2023.