Inflation likely picked up in May

The Bangko Sentral ng Pilipinas said inflation likely accelerated to as high as 2.7 percent in May from 2.2 percent in April, driven by higher prices of oil and agricultural products on supply disruptions and natural disaster during the period.

The BSP Department of Economic Research said in the report the May inflation would likely settle within a range of 1.9 percent to 2.7 percent.

“Higher domestic oil prices as well as the uptick in the prices of various agricultural products due to supply bottlenecks and the impact of typhoon Ambo contributed to positive price pressures during the month,” it said.

“Meanwhile, the electricity rates in Meralco-serviced areas declined during the month despite the reported increase in the total electricity bill due to higher consumption,” it said.