Category : Press Release
Date : May 05, 2020
Agency : Bangko Sentral ng Pilipinas
Title : April Inflation Lower at 2.2 Percent
Article : Year-on-year headline inflation slowed down to 2.2 percent in April from 2.5 percent in the previous month and was within the BSP’s expected range of 1.9-2.7 percent for the month. The resulting year-to-date average inflation rate of 2.6 percent was within the Government’s target range of 3.0 percent ± 1.0 percentage point for the year. Likewise, core inflation—which excludes selected volatile food and energy items to measure underlying price pressures—eased to 2.8 percent year-on-year in April from 3.0 percent in the previous month. Meanwhile, month-on-month seasonally-adjusted inflation dropped to -0.1 percent in April from 0.1 percent in March.

Headline inflation continued to decelerate as most major non-food commodity groups registered either lower or negative inflation rates in April. Among non-food items, transport inflation declined further as the significant drop in global oil prices led to downward price adjustments of domestic petroleum products. On the other hand, food inflation increased further as year-on-year inflation for selected agricultural products such as, fruits and vegetables rose to double-digit rates due to bottlenecks in the transport of food items amid the Luzon-wide quarantine. In response to this, the government has implemented various measures such as, the ‘Food Pass’ system to address problems in the distribution of food products to ease supply-side pressures.

The inflation outturn is consistent with the BSP’s prevailing assessment that inflation is expected to be benign over the policy horizon as domestic and global economic activity slowed in response to the COVID-19 outbreak. At the same time, the latest baseline forecasts indicate that inflation could settle at the low end of the government’s 2-4 percent target range in 2020. Going forward, the BSP will continue to closely monitor evolving price and output developments here and abroad to ensure that the monetary policy stance remains consistent with the price stability objective conducive to a balanced and sustainable economic growth.

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