By NG Seruela
Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno is optimistic that the inflation rate in the country will drop in the second half of the year.
In today’s Laging Handa public briefing, Diokno said the inflation rate decreased from 4.7% in February to 4.5% in March. He pointed out that the decreased rate was caused by the slow increase of the price of some food items.
He said the inflation rate for the first two quarters of 2021 may still be high, but will decrease by the second half.
“So, ang initial forecast namin for this year [our initial forecast for this year], our inflation rate will average around 4.2%.”
He explained that the increase of the inflation rate is “transitory,” caused by the base effect due to the deceleration of inflation in the same quarter last year.
Diokno added that the Development and Budget Coordination Committee (DBCC) might lower the growth target for this year from 6.5% to 7.5%, to 6% to 7% due to the strict quarantine restrictions implemented in the country
