April inflation rate seen decelerating further to 6.3%-7.1%

Lower power rates, drop in the prices of fish and vegetables and lower liquefied petroleum gas (LPG) are expected to help decelerate inflation rate to 6.3 to 7.1 percent in April 2023.

In a statement Friday, the Bangko Sentral ng Pilipinas (BSP) said these factors can be countered by increases in the prices of petroleum, rice and meat as well as the impact of weaker peso against the United States dollar.

“Going forward, the BSP remains prepared to respond appropriately to continuing inflation risks in line with its data-dependent approach to monetary policy formulation,” it said.

The rate of price increases decelerated for the second consecutive month last March to 7.6 percent after hitting a 14-year high of 8.7 percent last January.

The average inflation in the first quarter this year stood at 8.3 percent, way above the government’s 2 to 4 percent target.

Monetary authorities expect domestic inflation rate to return to within-target levels starting in the last quarter this year.

The BSP’s average inflation forecast for this year is 6 percent. (PNA)