The Bangko Sentral ng Pilipinas (BSP) estimates that the increase in market prices of goods will likely to continue.
Based on the BSP’s inflation forecast for May, they expect the inflation rate to accelerate to between 3.7% to 4.5%.
In addition to this, inflation and increasing commodity prices, the prices of goods have also exceeded the government’s price ceiling.
The BSP attributes the rapid inflation to the continued increase in the prices of electricity and vegetables, as well as the recent depreciation of the peso.
Meanwhile, low prices of rice, fish, and fruits may help offset the increase in inflation.
According to the BSP, the inflation rate in for the month of May, may be even higher than the 3.8% recorded in April.
The Philippine Statistics Authority is scheduled to release the official data on the movement of inflation across the country on June 5.
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