Philippines: Inflation moderates further in April
May 5, 2020
Consumer prices fell 0.08% over the prior month in April, matching March’s decrease. April’s dip was largely the result of a sharp drop in transport prices and a smaller decrease in housing and utilities costs.
Inflation eased to 2.2% in April from 2.5% in March, but remained within the Central Bank’s target band of 2.0%–4.0%. Core inflation, which excludes volatile food and energy prices, ticked down to 2.8% from 3.0%. Meanwhile, annual average inflation fell to 2.1% in April from 2.2% in March.
This year, inflation should hover around current levels, supported by the pass-through from the Bank’s monetary policy easing. That said, the Covid-19 economic shock, virus-related lockdown measures and depressed oil prices so far in H1 could exert further downward pressure on prices.
Author: Lindsey Ice, Economist