Philippines’ April inflation comes in slower than expected at 3.8%

PHILIPPINE inflation quickened for a third straight month in April, although at a pace that was slower than anticipated and one that’s likely to keep the central bank on guard in terms of the policy interest rate. 

Consumer prices rose 3.8 per cent on-year last month, according to statistics agency data released on Tuesday. That was slower than the median 4.1 per cent gain estimated by economists in a Bloomberg survey.

Rice inflation came in at 23.9 per cent compared to a year ago, slower than the March rate of 24.4 per cent.

Bangko Sentral ng Pilipinas Governor Eli Remolona flagged last month an increasing risk of inflation breaching the central bank’s 2 to 4 per cent goal for a third straight year in 2024.

Persistent price pressures are building a case for the central bank to hold its key rate at a 17-year high of 6.5 per cent at a meeting this month, and delay a pivot to monetary easing possibly to next year. BLOOMBERG