Prices of local goods and services will likely stay within the government’s forecast range this year, even under the worst-case scenarios that may emerge from the ongoing coronavirus pandemic and the resulting quarantine that has brought the economy to a near standstill.
Thus said the Bangko Sentral ng Pilipinas (BSP) as it assured the public that the Philippines was one of the most resilient in the region when it comes to the ability to withstand the adverse effects of the public health crisis.
According to BSP Deputy Governor Francisco Dakila, the average inflation rate for this year would likely register between 1.75 percent and 3.75 percent—well within the government’s inflation target range of 3 percent, plus or minus 1 percentage point, for 2020 –2022.
The lower inflation forecast range reflected the view that inflation pressures could be muted in 2020 given the continued decline in world oil prices as well as the impact of the COVID-19 pandemic on both global and domestic economic prospects.
Meanwhile, BSP Governor Benjamin Diokno said that he expected the inflation rate for April to be within the 1.9-2.7 percent range.
“The progressive fall in inflation will continue,” the central bank chief said in a mobile phone message to reporters. “The collapse in oil prices is expected to moderate inflationary pressure coming from higher prices of rice and other food items along with upward adjustment in electricity rates in Meralco-serviced area.”
The government is set to announce the inflation rate for April on May 5, Tuesday. The inflation rate for March stood at 2.5 percent.
The central bank chief reiterated that the Philippines could weather the economic downturn caused by the COVID-19 disease, citing comparative data ranking the country as one of the strongest among emerging economies and the first in the Asean region. INQ