Inflation likely quickened to 5 to 5.8 percent in May: BSP

ABS-CBN News

Posted at May 31 2022 05:47 PM

Motorists queue for fuel at a gas station in Quezon City on April 19, 2022, after another oil price hike. The price hike resumes after two weeks of rollback as the price of crude oil remains volatile in the world market. Mark Demayo, ABS-CBN News/File
Motorists queue for fuel at a gas station in Quezon City on April 19, 2022, after another oil price hike. The price hike resumes after two weeks of rollback as the price of crude oil remains volatile in the world market. Mark Demayo, ABS-CBN News/File


MANILA - After quickening to 4.9 percent in April, inflation in May is likely to have further accelerated to between 5 to 5.8 percent due to high oil and food prices, the Bangko Sentral ng Pilipinas said Tuesday.

The projection is above the 2 to 4 percent target range of Philippine economic managers.

"The continued increase in domestic petroleum prices, higher prices of key food items, and peso depreciation are the primary sources of inflationary pressures during the month," BSP Governor Benjamin Diokno said.

He said these could be offset by lower electricity rates in Meralco-services areas as well as the decline in LPG and rice prices.

Inflation has been accelerating due to the rising global prices of petroleum products after Russia's invasion of Ukraine as well as the local meat shortage.

The BSP earlier said inflation could remain elevated in the coming months and is likely to average 4.6 percent this year.

The Monetary Board raised the benchmark borrowing rate to 2.25 percent this month to temper inflation.

The Philippine Statistics Authority is expected to release the official inflation figures on June 7.

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