The Philippine National Statistics Office announced today (May 7) that the April Consumer Price Index (CPI) surged by 3.8% year-on-year, slightly lower than economists’ projections of a 4.1% increase.
Despite this, the CPI index has expanded for the third consecutive month, prompting caution from the Philippine Central Bank regarding its interest rate policy.
Inflation attributed to rice prices in the Philippines for April stood at 23.9% year-on-year, marking a slight deceleration from March’s 24.4%.
Governor Eli Remolona of the Central Bank of the Philippines expressed concerns last month over the heightened risk of inflation surpassing the central bank’s target range of 2% – 4% for the third consecutive year in 2024.
Given the prevailing inflationary pressures, it is anticipated that the central bank will opt to maintain interest rates at a 17-year high of 6.5% during this month’s meeting. Furthermore, there is a likelihood that the easing of monetary policy may be postponed until next year.