Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno is not losing sleep over the above-target inflation rate recorded in the first four months of 2021.
The Philippine Statistics Authority reported a 4.5% increase in commodity prices in April, steady from March and sustaining a four-month streak of breaching the 2-4% target band of the Bangko Sentral ng Pilipinas.
PSA data showed food prices led the charge, with meat surging by a whopping 22.1% versus last year’s rates due mainly to a pork supply shortage in Luzon.
“The timely approval of the temporary cut in pork import tariffs is seen to help address supply constraints and ease price pressures going forward. In addition, inflation expectations remain well anchored to the inflation target over the policy horizon,” Diokno said in a statement.
The BSP governor said April’s inflation rate was “consistent with expectations” that prices will stay high this year “before settling close to the midpoint of the target range in 2022.”
“Improvements in external demand as well as continued rollout of the government’s COVID-19 vaccination program and other stimulus measures will bolster economic recovery,” he added.