BSP sees April inflation below 2% amid falling food prices

The Bangko Sentral ng Pilipinas (BSP) forecasts April inflation to be between 1.3% and 2.1%, potentially falling below 2%.

An economist projects inflation to further decelerate to 1.6% in April from 1.8% in March, citing lower food prices.

Factors contributing to the projected slowdown include the implementation of maximum suggested retail prices for imported rice and pork, a food security emergency declaration, and lower world rough rice prices.

Favorable weather conditions in Northern Luzon have also helped increase agricultural production, leading to greater local supplies of items like tomatoes.

If realized, the lower end of the BSP's forecast would mark the slowest inflation in over five years, or since October 2019.

However, upward adjustments in electricity rates and LRT-1 fares could moderate this disinflationary trend.