Headline inflation is likely to settle within the 2.9 percent to 3.7 percent range in May, as a result of lower utility rates and oil prices, the central bank said on Friday. Regular milled rice is currently selling at P37.38 per kg, up 0.16 percent week-on-week and by 1.39 percent from a year earlier. For full-year 2017, the BSP expects inflation to hit 3.4 percent, or within the target 2 percent to 4 percent. Higher consumption taxes, together with demand stimulus from the fiscal reform program, are expected to further stoke inflation, the central bank said. “Moving forward, the BSP will continue to monitor evolving price conditions in line with the BSP’s commitment to price stability conducive to balanced and sustained economic growth,” Tetangco said.

Source: Manila Times May 26, 2017 18:33 UTC