Headline inflation dropped further to 4.8 percent year-on-year in April from 6.4 percent in March. This brings the year-to-date average down to 6.4 percent from 6.9 percent a month earlier. Likewise, core inflation, which excludes specific food and energy items to measure generalized price pressures, was lower at 5.0 percent year-on-year in April from 5.6 percent in March. Meanwhile, month-on-month headline inflation was higher in April at 0.5 percent from 0.1 percent in March.
Most major commodity groups registered lower or negative inflation rates in April. Lower year-on-year food inflation—particularly for rice, meat, and miscellaneous food—drove down overall headline inflation in April. Meanwhile, only services inflation went up mainly because of the higher pump prices of petroleum products in April relative to the previous month.
Officer-In-Charge Armando L. Suratos noted that the inflation outturn in April was well within the 4.5-5.4 percent forecast of the BSP. Despite signs of oil prices slightly inching up, inflation developments have been in line with the BSP’s within-target inflation outlook. The BSP’s efforts will remain focused on its primary mandate of maintaining price stability while being mindful of the need to provide for the liquidity requirements of the economy.