Central Bank Forecasts May Inflation to Hit up to 7.9% Driven by Food Costs and Peso Weakness

The Bangko Sentral ng Pilipinas (BSP) has projected that inflation for May could range between 7.1% and 7.9%, citing rising food prices and a weaker peso as primary drivers. The forecast underscores continued price pressures in the Philippine economy, with the central bank closely monitoring the situation. The BSP's estimate suggests that inflation may accelerate from the previous month's level, potentially prompting further monetary policy adjustments. The peso's depreciation against the US dollar has added to import costs, particularly for food and fuel, while domestic food supply constraints have also pushed prices higher. The BSP remains vigilant and ready to take appropriate measures to ensure price stability, but the outlook points to sustained inflationary pressures in the near term.