Inflation may hit as high as 4.8 percent in April — BSP

The Bangko Sentral ng Pilipinas (BSP) expects inflation at 3.9-4.8 percent this month as rising oil and electricity rates offset falling rice prices and the peso’s continued rise against the dollar. Despite the possible uptick, the central bank said the rise in consumer prices would likely fall within its target of 3.5-5.5 percent this year from 3.2 percent last year. "Overall, based on the current assessment of the inflation risks, including the likely trend in oil and non-oil commodity prices, this estimate would allow inflation to settle within the 2010 target range," central bank Governor Amando M. Tetangco Jr. said in a text message on Monday. Inflation eased to 4.2 percent in the first quarter from 6.9 percent a year earlier. Inflation picked up to 4.4 percent in March from 4.2 percent in February due to rising clothing, fuel, light, water and service prices. Earlier, the central bank said inflation could hit 6 percent in June or July before easing towards the end of the year due to possible wage and fare increases, as well as the continued rise in fuel prices. The Monetary Board has raised its inflation forecast to 5.1 percent from 4.64 percent this year and to 3.7 percent from 3.45 percent next year. Various groups are pushing for a P25 daily across-the-board wage increase, while transport groups are seeking a 50-centavo hike in jeepney fares and P10 more for the taxi flag down rate. — NPA, GMANews.TV