The Bangko Sentral ng Pilipinas (BSP) has projected that the inflation for the month of May 2023 will fall within the range of 5.8% to 6.6%.
Key factors contributing to upward price pressures are the higher costs of rice, vegetables, and other essential food items.
Additionally, the recent increases in liquefied petroleum gas (LPG) prices and Meralco electricity rates have further contributed to the inflationary pressures.
However, there are factors that could potentially counterbalance these upward pressures.
The cumulative rollback in domestic petroleum prices, along with lower prices of poultry and fish, as well as electricity rates from various regional power distributors, may help alleviate inflationary pressures in May.
The BSP will closely monitor economic developments that may impact both inflation and growth.
The central bank will maintain its data-dependent approach in formulating monetary policies to ensure stability and sustainable economic growth.
