* March CPI up 4.5% y/y vs +4.7% in Feb; core steadies at
3.5%
* BSP ready to take 'immediate measures' while monitoring
CPI
(Adds detail, quotes, background)
MANILA, April 6 (Reuters) - Philippine inflation eased for
the first time in six months in March as price increases for
certain food items slowed down, but it stayed outside the
central bank's target range of 2%-4% for the year.
The Consumer Price Index rose 4.5% from a year earlier
PHCPI=ECI , versus a 26-month high of 4.7% in February, as the
heavily-weighted food and non-alcoholic beverage group
registered a slower rise, the Philippine Statistics Authority
(PSA) said on Tuesday.
Last month's inflation came in below the median forecast of
4.8% in a Reuters' poll and within the central bank's projected
range of 4.2%-5.0% for March.
Core inflation, which excludes volatile food and fuel
prices, was steady at 3.5% PHCPXY=ECI .
Prices increases for vegetables and fish decelerated but the
closely-watched prices of meat products continued to rise at
increasing speed, the PSA said.
The Philippine central bank said the latest headline figure
was in line with expectations that inflation could settle above
the target this year due to meat supply constraints.
Despite elevated inflation, the Bangko Sentral ng Pilipinas
(BSP) has kept its benchmark interest rate at a record low of 2%
since November, maintaining an accommodative policy stance to
support an economy facing renewed challenges from fresh
coronavirus curbs. On Tuesday, BSP Governor Benjamin Diokno said current
monetary policy settings remained appropriate but added the
central bank was ready to take "immediate measures" while
monitoring inflation pressures. "Tighter domestic supply of meat products and improved
global economic activity could lend further upward pressures on
inflation," he said.
The BSP, which reviews monetary settings every six weeks,
will hold its next policy meeting on May 13.
"BSP will only consider recalibrating monetary policy should
second-round effects such as wage hikes become apparent or if
inflation expectations become disanchored," ING senior economist
Nicholas Mapa said.