go through Aubrey Rose A. Inosante, reporter
Title Inflation Rate Slows In April over five years, food prices fell and transgenderPort costs, Philippines statistics Authority (PSA) said that it gave CENTral bank room to further reduce rates.
Preliminary data from PSA showed that the consumer price index rose to 1.4% in April, slowing from 1.8% in March, and 3.8% a year ago.
April prints are at the low end of Sentral Ng Pilipinas in Bangkok' (BSP) 1.3% to 2.1% forecast. It is also below the median estimate of 1.8%. BusinessWorld A poll of 14 analysts was conducted last week.
This is the lowest inflation rate in 65 months, or the lowest inflation since November 2019 1.2%.
April also marked the ninth straight month of inflation settled within the central bank's target range of 2-4%.
Inflation averaged 2% in the first four months of 2025.
The latest inflation rate is “consistent with an assessment of the policy-wide inflation environment”, the BSP said in a statement.
However, it points to “a more challenging external environment that would curb global GDP (gross domestic product) growth and pose a downside risk to domestic economic activity.”
“On a whole, easier-to-manage inflation outlook and downside risks for growth allow for a shift to a looser monetary policy stance,” the central bank said.
“Looking forward, BSP will continue to take a way to determine further money making.”
The Monetary Commission resumed its mitigation cycle in April, lowering 25 baselines, increasing the critical rate to 5.5%.
Core inflation rates discounted food and fuel prices in April, the same as in March, according to PSA data. It slowed down from 2.4% last April.
National statistician Claire Dennis S. Marca (Claire Dennis S.
The food and non-alcoholic beverage index slowed sharply in April from 2.2% in March, while 6% in the same month in 2024 slowed down.
Food inflation fell to 0.7% in April from 2.3% in March and 6.3% in the previous year.
Mr Mapa said Rice's inflation fell from 7.7% in March and further reached 10.9% in April.
According to Mr Mapa, the average price of a kilogram of regular rice nationwide fell 13.3% to P44.45 in April, while P51.25 fell 13.3% in the same month last year.
The average price of a kilogram of milled rice fell by 10.4% to P50.54 from P56.42 in April 2024.
On the other hand, the price of a kilogram of special rice fell from P64.68 in the same month a year ago to p60.69 p60.69.
“Slower growth in plant prices can also help people with higher weight [in the basket]. Of course, we have seen a slowdown in fish. ”
Vegetables, tubers, plantains, cooking bananas and beans slowed to 2.3% in April from 6.9% a month ago.
Inflation for fish and other seafood in April was also recorded at 4.3% from 5.5% in March.
Pork inflation fell to 10.3% from 10.8% in March.
“This is a bit down, but the price difference is still very large, because it is still about 10%. As I mentioned before, in our food basket, the price of pork and chicken are two items that really contribute. The price of pork is still very high,” said Mr Mapa.
He said the average retail price of fresh pork Kasim In April, P333.29 rose 9.5% to P364.79 per kilogram in the same month of 2024.
Price of fresh pork belly (Liempo) April rose 9.7% to P381.02 from P374.20 a year ago.
“The continued slowdown in inflation is largely due to a significant decline in food prices, which is a positive sign that our policy interventions are working. We will continue to implement strategies to monitor price shocks with caution and proactively reduce inflationary pressures.”
Transportation costs
Mr Mapa said lower shipping costs were also a source of slower inflation in April.
Transportation index drops at a faster rate From 1.1% in March to 2.1% in April.
The rate of gasoline prices has dropped, with a faster pace of 12.4% in April, down from the previous month’s 7.5%. The rate of diesel costs has also dropped to 8.3% in April, down from 5% in March to 8.3%.
Asked if the nearest light rail transport (LRT) line 1 fare would affect inflation, Mr Mapa said the weight of transport by train was small throughout the inflation basket.
Starting April 2, the boarding fare for LRT-1 increased from P13.29 to P16.25, while the fare per kilometer ranged from P1.21 to P1.47.
Meanwhile, the PSA said inflation in housing, water, electricity, natural gas and other fuels increased from 1.7% in March to 2.9% in April. This is one of the main factors in title inflation, as it accounts for 39.5% of the share.
Manila Electric Co., Ltd.
PSA data shows that inflation at the lowest 30% of the lowest-income households fell to 0.1% in April from 1.1% in March and 5.3% a year ago.
In April, inflation in the National Capital Region (NCR) accelerated to 2.4% from 2.1% in March. Outside NCR, inflation slows to Last month, 1.8% of 1.2%.
HSBC Aris D. Dacanay said inflation in April was much lower than market expectations as lower food prices rose.
“Although electricity rates and train fares rose in April, the decline in food prices was enough to reduce inflation. Not only did rice prices lighten, but meat, fruit and vegetables prices also lighten, which suggests better supply in the economy,” he said.
Mr Dhakana noted that a strong peso against the US dollar helped to lower the price of the pump.
“All in all, weak inflation is good news for the Philippines economy at a time when uncertainty is looming in trade and the outlook for the global economy. Soft price pressures may help strengthen the country's main growth driver – consumption,” he said.
Chinabank Research said in an email that it expects inflation to remain soft and manageable due to good price pressures, stable government food prices and favorable fundamental impacts.
Chinabank also said favorable domestic conditions could help alleviate any potential negative impacts of higher tariffs and global policy uncertainty in the United States.
Cut in June?
Meanwhile, BSP said that the risks of inflation outlook continue to be broadly balanced from 2025 to 2027.
It added: “Up to the pressure comes from increased transportation costs, meat prices and utilities. At the same time, downside risks are related to the ongoing impact of tariffs on rice imports and the expected impact of weak global demand.”
Ralph G. Recto, Treasury Secretary and member of the Monetary Committee, said that the exceeding expectations of inflation allowed BSP to further reduce interest rates “to help us further improve the spending capacity of Filipinos, drive more investment, and grow the economy, especially in the rise of global uncertainty.”
The next policy meeting for BSP will be held on June 19.
Metropolitan Bank & Trust Co. chief economist Nicholas Antonio T. Mapa said the recent statement from BSP represents BSP Governor Eli M. Remolona, Jr. “Practical Leaving”.
“We expect the BSP to reduce the rate at RRP (reverse buyback) in June if the inflation outlook is still manageable,” he said on Tuesday.
Mr Dhakani said he expects the next policy rate to be in August instead of June.
“But because the downside is inflation, BSP lowers its policy tax rates earlier and may lower its policy interest rates, and the chances are that Year Year Year End Year are less likely to be.”
