Manila: The Bangko Sentral ng Pilipinas (BSP) on Tuesday stated that the latest inflation data aligns with its assessment of a manageable inflation environment. "The April 2025 inflation outturn is within the BSP's forecast range of 1.3 to 2.1 percent. The latest inflation outturn is consistent with the BSP's assessment of manageable inflation environment over the policy horizon with the downward revision in baseline inflation forecasts, aided primarily by the continued easing of commodity price pressures," the central bank mentioned in a statement.

According to Philippines News Agency, headline inflation further eased to 1.4 percent in April from 1.8 percent in March this year, as reported by the Philippine Statistics Authority (PSA). The BSP indicated that the risks to the inflation outlook continue to be broadly balanced for the years 2025 to 2027.

It noted that potential increases in transport charges, meat prices, and utility rates could apply upward pressure. Conversely, the ongoing effects of lower tariffs on rice imports and the anticipated impact of weaker global demand constitute downside risks.

The BSP highlighted the more challenging external environment, which could dampen global GDP growth and pose a downside risk to domestic economic activity. "On balance, the more manageable inflation outlook and the downside risks to growth allow for a shift toward a more accommodative monetary policy stance," it elaborated.

The BSP's Monetary Board has reduced policy rates by a total of 100 basis points since last year. According to BSP, it will continue to take a measured approach in deciding on further monetary easing. "The BSP will remain data-dependent in its pursuit of price stability conducive to sustainable economic growth and employment," it affirmed.