MANILA, May 7 (Reuters) - Philippine annual inflation increased for a third straight month in April due to accelerated food and transport price growth, backing the central bank's recent decisions to keep monetary policy restrictive.
The consumer price index (PHCPI=ECI), opens new tab rose 3.8% in April from a year earlier, below the 4.1% median forecast in a Reuters poll, and within the central bank's 3.5% to 4.3% forecast for the month. Annual inflation was 3.7% in March.
The April data brought year-to-date inflation to 3.4%, within the central bank's 2% to 4% target for 2024.
The economic planning agency said the data "underscores the need for vigilance."
The core inflation rate, which strips out volatile food and fuel items, eased to 3.2% in April from March's 3.4%. A Reuters poll had forecast April core inflation at 3.3%.
Following the data's release, the Bangko Sentral ng Pilipinas said it expected inflation to return to its 2% to 4% target for this year and next. In 2023, inflation averaged 6.0%.
ING economist Nicholas Mapa said on social media platform X the central bank will likely keep rates unchanged at its upcoming meeting.
The central bank, which next meets on May 16, has held the benchmark rate (PHCBIR=ECI), steady at the current 17-year high of 6.5% at its last four meetings.
(Reporting by Neil Jerome Morales and Karen Lema; Editing by John Mair and Shri Navaratnam)
