The Bangko Sentral ng Pilipinas (BP) said the country’s inflation rate remains under control despite surpassing the government’s target band since January this year.
“It’s under control,” BSP Governor Benjamin Diokno said recently.
Domestic inflation rate was on the rise since the last quarter of 2020 and exceeded the government’s 2-4 percent target band since January this year when it rose to 4.2 percent.
It further accelerated to 4.7 percent last February but registered a slower rate in March at 4.5 percent.
Average inflation in the first three months this year stood at 4.2 percent.
Monetary authorities forecast inflation to average at 4.2 percent this year while it is projected to post a slower average next year at 2.8 percent.
Diokno attributed the faster inflation rate to transitory factors, particularly the rise of some commodities like meat and oil rice.
He said the slower inflation rate last March was due to several factors like deceleration of the rice and vegetable inflation as well as meat inflation, with the latter on the price ceiling imposed on this product to address the impact of supply constraints.