Inflation in the Philippines increased to 3.8% in April, driven primarily by rising food prices, according to data released by the Philippine Statistics Authority (PSA) on Tuesday. The April rate exceeded March’s 3.7%, marking the third consecutive month of acceleration. However, the figure falls within the central bank’s (Bangko Sentral ng Pilipinas) forecast range of 3.5% to 4.3% and the government’s target of 2% to 4%.
National Statistician and PSA Undersecretary Dennis Mapa highlighted a notable trend in rice prices. “The average price of rice declined this April. Rice inflation slightly dropped to 23.9% in April, from 24.4% in March, across all households at the national level,” Mapa stated. This decrease is linked to a reduction in global market prices after a peak in January.
Despite the general stability, food inflation for the poorest 30% of Filipino families escalated to 8.5% from 7.4% the previous month. For these families, the overall inflation rate also climbed to 5.2%, largely due to food constituting a bigger portion of their expenses.
The first four months of the year saw an average inflation rate of 3.4%. Core inflation, which excludes volatile food and fuel prices, decreased to 3.2% from March’s 3.4% and a much higher 7.9% in April of the previous year.
BSP Governor Eli Remolona expressed caution regarding the economic outlook, noting that several factors could still drive inflation higher. “The central bank is unlikely to cut interest rates until we see a more sustained trend for inflation to slow down within the target range set by economic managers,” Remolona said.