THE country’s headline inflation could reach 7.1 percent to 7.9 percent in May due to price increases in key food commodities and the weakening of the peso against the US dollar, the Bangko Sentral ng Pilipinas (BSP) said on Saturday.
In a statement, the BSP said the higher prices of rice, vegetables and meat contributed to the upside risks to inflation during the month.
The central bank said that a weaker local currency also added to inflationary pressures.
These factors, it said, were expected to exert significant pressure on consumer prices.
“The BSP projects May 2026 inflation to settle within the range of 7.1 to 7.9 percent. Upside price pressures were driven by rising prices for rice, vegetables, and meat, as well as the depreciation of the peso,” the BSP said in its month-ahead inflation forecast.
Several factors helped temper the increase in prices, however, the BSP said.
“The recent rollbacks in domestic fuel prices, lower prices for fish, and slightly lower electricity rates partially offset the prevailing upside price pressures,” it said.
Headline inflation accelerated to 7.2 percent in April from 4.1 percent in March.
The April inflation data exceeded the BSP’s forecast range of 5.6 percent to 6.4 percent for the month.
The increase was primarily driven by faster increases in food and transport costs, reflecting the impact of the global oil volatility triggered by the war in the Middle East.
