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Inflation Rate Rose Slightly in April


“Year-on-year inflation rate in April showed a moderate increase to 3.7 percent from 3.3 percent recorded in March.  This brings the average inflation rate in the first four months of the year to 3.2 percent, well below the government’s revised inflation target range of 5.0-6.0 percent for 2000.  The BSP welcomes this development and is pleased to note that the April inflation rate is on track with the BSP’s internal projection of 3.5-3.7 percent for the said month.”  

“The slight increase in the April inflation rate was brought about by higher inflation in all commodity groups except for that of miscellaneous items which remained at negative 1.0 percent.  In particular, the inflation rate for food, beverages and tobacco (FBT) rose to 1.1 percent in April from 0.7 percent in March; clothing to 2.4 percent from 2.3 percent; housing and repairs (H&R) to 6.1 percent from 5.9 percent; fuel, light, and water (FLW) to 10.1 percent from 9.2 percent; and services to 11.5 percent from 11.4 percent.” 

“Likewise, the month-on-month inflation rate in April accelerated slightly to 0.2 percent in April from 0.1 percent in the previous month.  The inflation rate of H&R rose to 0.5 percent from 0.2 percent while that of FLW rose to 1.1 percent from 0.6 percent.   On the other hand, the inflation rates of FBT, clothing, and miscellaneous items in April were steady at their corresponding March levels of negative 0.1 percent, 0.2 percent, and 0.1 percent.”    

“The inflation rate in April remains significantly below the government’s inflation objective, providing the monetary authorities with room for flexibility in monetary management.   This, notwithstanding, the BSP will maintain a cautious stance, taking into account all relevant variables and indicators in the conduct of policy, to protect the gains achieved in the inflation front and keep the inflation rate within target levels.   Monetary policy will also remain supportive of a broadly stable exchange rate, while maintaining the needed flexibility to accommodate sustainable economic growth.”

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