BSP sees inflation settling between 5.8 and 6.6% in May

The Bangko Sentral ng Pilipinas (BSP) said on Wednesday that inflation may range from 5.8 to 6.6% in May.

“Higher prices of rice, vegetables, and other key food items, as well as the increase in LPG and Meralco electricity rates, are the primary sources of upward price pressures for the month,” the BSP said in a statement.

“Meanwhile, the cumulative rollback in domestic petroleum prices as well as lower poultry and fish prices and electricity rates of various regional power distributors could lead to lower inflation in May.”

The government will release the May inflation report next week.

Inflation, or the pace of price increases over a specific time period, slowed to 6.6% in April from 7.6% in March.

The Philippines’ average inflation rate for this year is expected to fall between 5 and 7%, the government’s economic managers said last month.