BSP sees April inflation at 4.2-5%

The Bangko Sentral ng Pilipinas (BSP) projects April inflation to be between 4.2 percent and 5 percent, exceeding the central bank's target.

A poll of 17 analysts yielded a median estimate of 4.7% for April inflation, nearing the upper end of the BSP's projection.

If realized, this would mark the fourth consecutive month of inflation overshooting the 2-4% target.

Analysts attribute the rise in inflation to elevated meat prices, particularly pork, following the lifting of price caps on selected pork and chicken products.

The BSP's earlier projection of 4.6% for April inflation cited potential increases in Meralco rates and higher costs for pork, fish, and rice.

To address the spike in pork prices, President Rodrigo R. Duterte signed Executive Order (EO) 128, which reduced tariffs on pork imports.

The BSP anticipates inflation to remain above the target until the third quarter before decelerating by the end of 2021.