April inflation seen below 2%

Inflation likely continued to settle below 2 percent in April due to lower food prices, an economist said in a report by Philippine News Agency.

In a Viber message Thursday, Rizal Commercial Banking Corporation chief economist Michael Ricafort said inflation is projected to further decelerate to 1.6 percent in April from 1.8 percent last March.

"The initial implementation of the maximum suggested retail price of imported rice on January 20, 2025, the declaration of a food security emergency on February 3, 2025, as well as world rough rice prices at the lowest in more than three years, could all help further reduce local rice prices, which account for about 9 percent of the inflation, and also support benign inflation," Ricafort said.

The economist said relatively better weather conditions especially in Northern Luzon helped increase agricultural production that could help increase local supplies.

"For instance, the price of local tomatoes declined dramatically since February 2025 amid supply glut in some areas in Northern Philippines, thereby could have helped ease inflationary pressures on some vegetables," he said.

Ricafort added that the Department of Agriculture's imposition of a maximum suggested retail price (MSRP) on pork also helped tame pork prices.

"Lower US dollar/peso exchange rate in April 2025 [at] 56 levels could have led again to lower importation costs that could lead to some easing in overall inflation," he explained.

April 2025 inflation data is scheduled to be released by the Philippine Statistics Authority on May 6.

"For the coming months, it is possible for inflation to sustain at 2 percent levels up to early 2025, or well within or even below the Bangko Sentral ng Pilipinas' inflation target range of 2-4 percent, that could justify further BSP rate cuts," Ricafort added.