The monetary authorities on Wednesday project inflation to slow down further in May, from as low as 5.8 percent to no more than 6.6 percent.
According to the Bangko Sentral ng Pilipinas (BSP), the cumulative effect of cuts in domestic petroleum prices, the electricity rates of various regional power distributors and lower fish and poultry prices have softened the rate at which commodities prices change during the month.
The BSP acknowledged that higher prices of rice, vegetables, and other key food items and the increase in LPG and Meralco electricity rates were the main sources of upward price pressures for the month.
Inflation has steadily retreated since peaking 8.7 percent in January this year, to 8.6 percent in February, 7.6 percent in March and 6.6 percent in April.
Food price inflation remain elevated but their rate of change had been the slowest over seven months to only 7.9 percent in April from 9.3 percent in March.
Going forward, BSP will continue to monitor developments affecting the outlook for inflation and growth in line with its data-dependent approach to monetary policy formulation.
