April inflation at 4.5%, highest since last year

Philippine consumer prices picked up in April, the highest since a year ago, the government said on Thursday. According to the National Statistics Office, inflation was at 4.5 percent in April as nearly all commodity groups posted higher annual rates. Meanwhile, core inflation, which excludes highly volatile food and energy items, rose 3.8 percent in April from 3.5 percent in March. "Compared to March 2011, prices of consumer items rose 0.8 percent in April from 0.3 percent. This was triggered by the double-digit growth in fuel, light and water (FLW) index in NCR brought about by the increased charges in electricity rates in the area. Higher monthly rates in electricity along with the upward price adjustments in kerosene in many regions also contributed to the uptrend," the NSO said. The higher inflation rate is seen to prompt the Bangko Sentral ng Pilipinas to hike interest rates in the country. The BSP will hold its policy meeting Thursday afternoon. Philippine interest rates were kept at historic lows for 20 consecutive months since July 2009, a move to counter the adverse impact of sluggish global trade and economy. In March, the Monetary Board has jacked up the interest rates by 25 basis points to curb rising consumer prices. Analysts and economists are expecting the BSP to increase rates further in its meeting later. - CMA/OMG, GMA News