Philippine headline inflation accelerated to 7.2 percent year-on-year in April, up from 4.1 percent in March, driven by rising international fuel prices that impacted food and energy costs, the Bangko Sentral ng Pilipinas (BSP) reported.
The April figure exceeded the BSP's forecast range of 5.6 percent to 6.4 percent for the month. From January to April, average inflation stood at 3.9 percent, higher than the BSP's full-year target of 3.0 percent.
Impact on Low-Income Households
For households belonging to the lowest 30 percent of the population, inflation rose faster from 4.2 percent in March to 8.5 percent in April. Prices of rice and fish continued to increase due to higher post-harvest and transportation costs.
Transport and Electricity Costs
Transport inflation also rose alongside higher domestic petroleum pump prices, while electricity rates increased due to higher generation charges.
On a month-on-month seasonally adjusted basis, headline inflation climbed to 3.0 percent in April from 1.6 percent in March. Core inflation, which excludes volatile food and energy items, rose to 3.9 percent in April from 3.2 percent in March.
The BSP reiterated its commitment to its primary mandate of slowing inflation and will take necessary measures to bring it back to the 3-percent target in a timely manner. The central bank remains vigilant about spillover effects, data-driven, and ready to act if needed.
