Inflation rose steadily in May and hit a new five-year high, although the Bangko Sentral ng Pilipinas (BSP) was quick to allay concerns, saying that the figure was below expectations.
A Philippine Statistics Authority (PSA) report showed inflation jumped to 4.6 percent in May from April’s 4.5 inflation rate.
This month’s inflation, or the rate at which prices of goods are rising, is the highest rate recorded since November 2011, but is still a few notches below the 4.9 percent market estimates, The Philippine Star said.
The PSA report revealed price increases quickened for a slew of products including alcoholic beverages and tobacco, and transportation and household equipment.
Meanwhile, price increases slowed for food and non-alcoholic beverages.
The Bangko Sentral expects inflation to spike by the end of the year on the back of a possible increase in crude oil prices and effects of the newly implemented The Tax Reform for Acceleration and Inclusion Law or TRAIN Law.
“The inflation outlook continues to be a concern and requires close attention,” BSP Governor Nestor Espenilla said.
He added that BSP authorities will continue to consider other adjustment mechanisms.
In May, Espenilla has raised the BSP’s benchmark lending rate by 25 basis points, the first time since September 2014, in a bid to rein in inflation.
