Bangko Sentral ng Pilipinas governor Eli Remolona on Tuesday said inflation, or the rate of change in prices, averaging lower than the ceiling of 4 percent this year is achievable.
He told members of the Tuesday Club meeting at the EDSA Shangri-la Hotel in Mandaluyong City that below-ceiling inflation averaging only 3.8 percent this year is doable.
“Just under 4 percent inflation to 3.8 percent is doable,” Remolona said, citing base impact as ground for the optimism. Base impact relates to inflation averaging 6 percent last year, which has since moderated to 3.4 percent in the first four months this year, and which strengthens the arithmetical likelihood for the rate to slow down this year.
This develops even as various analysts forecast inflation in May averaging higher to 4 percent from only 3.8 percent in April.
As for Remolona, he earlier forecast inflation in May ranging from a low of 3.7 percent to no higher than 4.5 percent on the basis of lower prices on rice, fish and fruits as well as on oil and cooking gas. Their collective impact is seen offsetting the continued increases in electricity rates, vegetable prices and the weak peso.
The Philippine Statistics Authority is scheduled to release the outcome of its latest survey on prices tomorrow, Wednesday, June 5 when the consensus among analysts is for inflation averaging higher to 4 percent.
