Inflation will likely decelerate in May due to lower prices of fuel and other commodities, Bangko Sentral ng Pilipinas, or BSP said on Wednesday.
BSP made the announcement ahead of the official inflation result this month, which the Philippine Statistics Authority will announce on 6 June.
In a statement, BSP said the consumer price growth would likely slow down for the fourth straight month to 5.8-6.6 percent after it hit a 14-year high of 8.7 percent in January.
“The cumulative rollback in domestic petroleum prices as well as lower poultry and fish prices and electricity rates of various regional power distributors could lead to lower inflation in May,” BSP said.
The BSP, however, said the prices of rice, vegetables, and other key food items as well as the increase in LPG and Manila Electric Co. (Meralco) electricity rates are the primary sources of upward price pressures for the month.
“BSP will continue to monitor developments affecting the outlook for inflation and growth in line with its data-dependent approach to monetary policy formulation,” it said.