The Bangko Sentral ng Pilipinas (BSP) on Tuesday said the latest inflation data of 1.4 percent for April is consistent with its assessment of 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 said in a statement.

Headline inflation further eased to 1.4 percent in April from 1.8 percent in March this year, according to the Philippine Statistics Authority (PSA).

The BSP said the risks to the inflation outlook continue to be broadly balanced for 2025 to 2027.

It added upside pressures come from possible increases in transport charges, meat prices, and utility rates.

Downside risks, meanwhile, are linked to the continuing effects of lower tariffs on rice imports and the expected impact of weaker global demand.

"The Monetary Board noted the more challenging external environment, which would dampen global GDP (gross domestic product) growth and pose a downside risk to domestic economic activity," the BSP said.

"On balance, the more manageable inflation outlook and the downside risks to growth allow for a shift toward a more accommodative monetary policy stance.”

The BSP's Monetary Board has reduced policy rates by a total of 100 basis points since last year.

According to the 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 said. 

PNA PHOTO