Over 5.5% Inflation Rate Expected Until End of 2022

The inflation rate of the country surpassed that of the government’s 2-4 percent last May and will continue to post higher than 5.5 percent rates in the upcoming quarters, according to a monthly publication by First Metro Investment Corporation (FMIC).

The publication, Market Call, which was released on Monday, said that the high inflation rate in May was due to multiple factors which include the rising oil prices in the global market and the increase in prices of basic commodities such as food and beverage.

Rising prices have also been a problem of the government, with the price increase rate of April recorded at 4.9 percent, which was higher by 0.9 percent from March.

The price increase rate in May was 5.4 percent.

Moreover, the average inflation rate of the country from January to May was at 4.1 percent.

First Metro Investment Corporation (FMIC) added that inflation had a slower pace last May.

“We think headline inflation will remain above 5.5 percent for the rest of the year,” the publication read.

Moreover, the publication added that the inflation rate for the second quarter is forecast at around 5.4 percent to 5.7 percent, before relaxing in the final months of the year. (GFB)