Inflation Warning: BSP Sees May Prices Jumping Above 7%
The BSP estimates May inflation likely landed between 7.1% and 7.9%, driven by food prices and the weaker peso.
Filipino households may be facing another painful inflation print, with the Bangko Sentral ng Pilipinas saying May inflation likely climbed to between 7.1% and 7.9%.
If the figure lands near the upper end of that range, it would top April’s 7.2% and become the fastest inflation rate since February 2023. It would also mark a sharp jump from the 1.3% rate recorded in May last year.
The BSP pointed to higher prices of rice, vegetables and meat, along with the weaker peso, as the main forces pushing prices up. Department of Agriculture monitoring cited in the report showed Metro Manila rice prices remained elevated in the third week of May, with local well-milled rice averaging nearly P50 per kilo and premium rice above P55 per kilo.
Vegetables also stayed expensive in NCR markets, with ampalaya, sitao, carrots, beans and lettuce all showing high average prices. The peso’s slide to around the P61-per-dollar level during May also likely added pressure by making imported fuel, food and raw materials more costly.
The BSP said fuel rollbacks, lower fish prices and slightly lower electricity rates helped offset some of the pressure, but an economist warned inflation could still accelerate if second-round effects continue. Source: Philstar
