BSP sees inflation settling at 4.5-5.5% in May

MANILA, Philippines—The Bangko Sentral ng Pilipinas said the annual inflation rate in May would likely settle at 4.5 to 5.5 percent, with the higher end of the forecast exceeding the 5-percent threshold.

The government has set the target inflation ceiling for the year at an average of 5 percent.

While saying that inflation for May could breach the 5-percent mark, the BSP said the full-year average would likely remain below 5 percent.

“Inflation for May is forecast to be within the range of 4.5 to 5.5 percent. The forecast incorporates the remaining taxi fare adjustments, seasonal increases in school supplies, as well as the impact of fuel subsidies for jeepney and tricycle operators, among others,” BSP Governor Amando Tetangco Jr. said.

“We have recently seen some easing in the price of oil in the international market, but there continue to be risks of volatility in this market. Other risks to the forecast include possible supply disruptions that are weather-related. These, however, could be mitigated by stable exchange rates. The BSP will continue to monitor developments to ensure that our stance for monetary policy remains appropriate,” Tetangco said.