MANILA :Philippine annual inflation increased for a third straight month in April due to accelerated food and transport price growth, backing the central bank’s recent decisions to keep monetary policy restrictive.
The consumer price index rose 3.8 per cent in April from a year earlier, below the 4.1 per cent median forecast in a Reuters poll, and within the central bank’s 3.5 per cent to 4.3 per cent forecast for the month. Annual inflation was 3.7 per cent in March.
The April data brought year-to-date inflation to 3.4 per cent, within the central bank’s 2 per cent to 4 per cent target for 2024.
The economic planning agency said the data “underscores the need for vigilance.”
The core inflation rate, which strips out volatile food and fuel items, eased to 3.2 per cent in April from March’s 3.4 per cent. A Reuters poll had forecast April core inflation at 3.3 per cent.
Following the data’s release, the Bangko Sentral ng Pilipinas said it expected inflation to return to its 2 per cent to 4 per cent target for this year and next. In 2023, inflation averaged 6.0 per cent.
ING economist Nicholas Mapa said on social media platform X the central bank will likely keep rates unchanged at its upcoming meeting.
The central bank, which next meets on May 16, has held the benchmark rate steady at the current 17-year high of 6.5 per cent at its last four meetings.
