The inter-agency Development Budget Coordination Committee on Monday adjusted upward the inflation forecast in 2018 to 4 percent to 4.5 percent from the previous estimate of 2 percent to 4 percent, taking into account the rising consumer prices in the first five months of the year.
The DBCC, however, kept the forecast of 2 percent to 4 percent from 2019 until 2022 as inflation is expected to remain manageable within the four-year period.
“It is based on the year-to-date average inflation rate of 4.1 percent,” Budget Secretary Benjamin Diokno said in a text message.
Despite the adjustment in 2018 forecast, Diokno said inflation was decelerating, month-on-month.
“With world price of oil slowing down and with rice importation done, we expect inflation rates in the second half of the year to start to taper off,” Diokno said.
Inflation in May rose to 4.6 percent from 4.5 percent in April, bringing the first five months’ average to 4.1 percent, slightly above the upper limit of the target range of 2 percent to 4 percent.