Inflation steadies anew in May but supply woes persist

Inflation was unchanged in May from April, marking a second straight month of stability although some supply problems driving up consumer prices were still there.

Inflation, as measured by consumer price index, stood at 4.5% year-on-year in May, the Philippine Statistics Authority reported Friday. That brought the year-to-date tally to 4.4%, settling above the government’s 2-4% annual target for five consecutive months.

As it is, the May reading sustained an easing price growth that started in March, when inflation decelerated from a two-year high. It removes some pressure from the Bangko Sentral ng Pilipinas to act against rising prices.

For now, BSP Governor Benjamin Diokno believes risks to the inflation outlook “are broadly balanced.”

Diokno said, “The implementation of the temporary reduction in tariffs on imported pork is seen to address supply constraints and ease price pressures on meat products going forward.”

Source: https://www.philstar.com/business/2021/06/04/2103084/inflation-steadies-anew-may-supply-woes-persist

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