BSP: Recent inflation rise transitory, no reflation

The Bangko Sentral ng Pilipinas (BSP) stated that the recent rise in inflation is transitory and not indicative of reflation.

In February, inflation reached 4.7%, driven by supply disruptions caused by typhoons and the African Swine Fever outbreak, affecting pork supplies.

Governor Benjamin Diokno emphasized that reflation occurs when prices recover from a period of low inflation after an economic downturn, which is not the current situation in the Philippines.

The BSP noted that higher inflation is expected to be temporary due to supply issues rather than demand-driven factors and does not warrant monetary policy changes.