Food and Fuel Prices Rise, Philippine April Inflation Could Hit 6.4 Percent

JAKARTA - The Philippine central bank expects April inflation to rise sharply to a range of 5.6 percent to 6.4 percent. Pressure comes from food, fuel, electricity prices, and a weakening peso.

As reported by the Philippine News Agency (PNA), Thursday, April 30, the Bangko Sentral ng Pilipinas or BSP said that the risk of inflation increased because domestic oil prices were much higher.

"The risk of inflation increases due to the pressure of rising prices from much higher domestic oil prices, rising costs of a number of major food items such as rice, fish, and meat, rising electricity tariffs, and weakening peso," the BSP said in a statement, Thursday.

The increase is quite sharp compared to the March inflation which was at the level of 4.1 percent. This means that the burden of prices in the Philippines has not subsided, especially for needs that are directly felt in the citizens' wallets.

The BSP said the decline in vegetable and fruit prices could help contain overall inflation. However, the risk of price increases still needs to be closely monitored.

The Philippine central bank said it would remain vigilant and follow the latest data, especially on inflation and the outlook for economic growth.

"We will continue to monitor the latest developments in the Middle East regarding their impact on inflation and economic activities," the BSP said.

The situation in the Middle East is a concern because it could affect energy prices. If fuel prices rise, the effect could spill over to transportation costs, electricity, and daily commodity prices.

The Philippine Statistics Authority is scheduled to release April inflation data on May 5.