Europe-PH News

Inflation accelerates past target, hits over 3-year high in April at 4.9%

May 06, 2022

Pilar Manuel

Europe-PH News

Metro Manila (CNN Philippines, May 5) — The Philippine Statistics Authority on Thursday reported an annual inflation rate of 4.9% for April, the fastest in more than three years, with food and energy costs leading the rise in prices.

The recent pace, which is the quickest since 5.2% in December 2018, marks the first time that inflation breached the 2-4% target band of the Bangko Sentral ng Pilipinas for this year.

April’s rate also brings average inflation for 2022 to 3.7%.

Food and non-alcoholic beverages topped the sources of quicker inflation last month, with vegetables, meat and fish leading the increase for this commodity basket.

Transport came second, driven primarily by faster inflation rates for diesel, gasoline and sea passenger transport amid the prolonged uptick in fuel prices.

Housing, water, electricity, gas and other fuels also emerged a main source of acceleration in April, said the PSA. Cooking gas, electricity and rentals led the faster pace for this commodity group.

Inflation quickened in the National Capital Region this April to 4.4% from 3.4% the month prior. Areas outside NCR also reported a quicker pace—from 4.1% in March, inflation rose to 5.1% in April.

All regions recorded faster inflation last month, with the Cordillera Administrative Region leading the pack at 6.3%. The Bangsamoro Autonomous Region in Muslim Mindanao logged the slowest rate at 2.1%.

Inflation also accelerated for the country’s poorest households. From 3.3% in March, the bottom 30% income households observed a rate of 3.8%. Unlike other figures, this group still uses 2012 as base year as the PSA is still in the process of rebasing to 2018.

April’s figure brings average inflation for this income group to 3.2% this year so far.

“The inflation outturn is consistent with the BSP’s assessment that inflation will remain elevated over the near term due to the continued volatility in global oil and non-oil prices, reflecting largely the continued impact of the conflict in Ukraine on global commodities market,” said the BSP, which pegged a 4.2-5% range for inflation last month.

The central bank said inflation may dwell above the goalposts for 2022 before settling within target next year, citing the expected easing of supply-side pressures.

The BSP listed the shortage in local food supply and possible impact of higher oil prices on transport fares as upside risks over the near term. Meanwhile, the lingering threat of COVID-19 cases and emergence of new variants may temper a global economic rebound and lead to retightening of measures.


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