Inflation, which has moderated from its January peak of 8.7 percent in subsequent months, is forecast to moderate even further in April.
According to the Bangko Sentral ng Pilipinas (BSP), inflation is seen ranging only from 6.3 percent to no more than 7.1 percent.
“Lower electricity rates, the decline in prices of fish and vegetables, and rollback in LPG prices contributed to easing price pressures during the month,” it said.
Inflation averaged only 7.6 percent in March, the lowest since September last year, on the back of lower food prices tracked by the Philippine Statistical Office (PSA).
But analysts and observers are divided on the forward track of prices given that core inflation, which removes fuel and food prices in computing the consumer price index, increased by 8 percent in March after having dropped to only 7.8 percent in February.
The BSP said upward price pressures are expected from higher domestic petroleum prices, increased rice and meat prices, and peso depreciation.
The immediate goal is to bring back inflation to within the 2 to 4 percent target range that the economic managers use in formulating structural and policy responses to evolving macroeconomic events.
