The April 2025 inflation outturn is within the Bangko Sentral ng Pilipinas (BSP)’s forecast range of 1.3 to 2.1 percent.
The new BSP complex
The latest inflation outturn is consistent with the central bank’s assessment of manageable inflation environment over the policy horizon with the downward revision in baseline inflation forecasts, aided primarily by the continued easing of commodity price pressures.
BSP weighs balanced inflation risks against weaker global growth
The risks to the inflation outlook also continue to be broadly balanced for 2025 to 2027. Upside pressures come from possible increases in transport charges, meat prices, and utility rates.
Meanwhile, downside risks are linked to the continuing effects of lower tariffs on rice imports and the expected impact of weaker global demand.
The Monetary Board noted the more challenging external environment, which would dampen global GDP growth and pose a downside risk to domestic economic activity.
On balance, the more manageable inflation outlook and the downside risks to growth allow for a shift toward a more accommodative monetary policy stance.
Looking ahead, the BSP will continue to take a measured approach in deciding on further monetary easing. The BSP will remain data-dependent in its pursuit of price stability conducive to sustainable economic growth and employment.