MANILA - The Philippine central bank expects annual inflation in April to be between 3.6 and 4.5 percent, with the average rate seen staying slightly above the midpoint of the full-year target range, its governor said on Tuesday.
Inflation eased to a four-month low of 3.9 percent in March despite strong liquidity growth and weakness in the peso.
The forecast for April takes into account higher rice prices and power rates and possible easing of other food costs in the month, Governor Amando Tetangco said in a mobile text message to reporters.
He said inflation was expected to remain manageable, although the average rate was likely to stay slightly above the midpoint of the 2014 target of 3 to 5 percent.
Tetangco previously said an average inflation rate hovering above the midpoint of the target would point to narrowing room to keep policy rates steady.
The statistics office will release the April inflation data on May 6, two days before the central bank meets to review monetary policy.