April inflation quickens to 3.8%, still within target range

MANILA, Philippines — Inflation slightly quickened to 3.8 percent year-on-year in April, mainly due to costlier vegetables and fish, as well as higher pump prices of petroleum products, the Philippine Statistics Authority reported Tuesday.

Price growth last month was faster than the 3.7 percent recorded in March. But it remained within the Bangko Sentral ng Pilipinas’ (BSP) 2 to 4 percent target range for the fifth consecutive month, defying expectations of an above-target reading.

The April 2024 reading was also lower than the 6.6 percent in the same month last year.

The top three commodity groups contributing to the April 2024 overall inflation were:  Food and non-alcoholic beverages; restaurants and accommodation services, and transport.

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Food inflation at the national level rose to 6.3 percent in April 2024 from 5.7 percent in March 2024. In April 2023, food inflation was higher at 8.0 percent.

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The Monetary Board, the highest policymaking body of the BSP, will meet on May 16 to review its policy stance. Analysts expect the BSP to keep its policy rate at a 17-year high of 6.5 percent as inflation sustains its uptrend.

As Governor Eli Remolona Jr. telegraphed to the market, an above-target inflation would likely prompt the BSP to delay any rate cuts to avoid upsetting inflation expectations, which “continued to be broadly anchored” based on highlights of the last MB meeting in April.