BSP vows action to tame inflation surge

The Bangko Sentral ng Pilipinas has pledged to take necessary policy actions to bring inflation back to target levels, as price pressures continue to accelerate due to higher global fuel and food costs.

In a statement Tuesday, the central bank said it remains committed to its mandate of maintaining price stability and ensuring inflation returns to its 3-percent target within a reasonable timeframe.

“The BSP is committed to fulfilling its primary mandate of slow inflation and will take necessary actions to ensure inflation returns to its 3-percent target within a reasonable time,” it said.

Latest data showed inflation rising to 7.2 percent in April, up from 4.1 percent in March, exceeding the BSP’s forecast range of 5.6 percent to 6.4 percent for the month.

From January to April, average inflation stood at 3.9 percent, already above the central bank’s full-year target of 3 percent.

The BSP said the surge was largely driven by higher international oil prices, which pushed up food, transport, and energy costs.

It noted that rice and fish prices increased due to higher post-harvest and transportation expenses, while transport inflation rose following increases in domestic fuel prices.

Electricity rates also went up due to higher generation charges, further adding to inflationary pressure.

Core inflation, which excludes volatile food and energy items, also climbed to 3.9 percent in April from 3.2 percent in March.

To address rising prices, the Monetary Board earlier raised policy interest rates by 25 basis points, citing inflationary risks linked to geopolitical tensions in the Middle East.

The BSP now projects inflation to average 6.3 percent this year before easing to 4.3 percent in 2027.

It added that it will remain “vigilant for spillover effects, data-driven, and ready to act as needed” to safeguard price stability.