MANILA - Philippine annual inflation slowed to 4.8 percent in April, broadling in line with market estimates, as prices of nearly all commodity groups fell from last year's bloated levels, the National Statistics Office said on Tuesday.

Inflation in March was at 6.4 percent from a year earlier.

The market had expected April inflation to ease to a 16-month low of 4.7 percent, according to a Reuters poll last week. The forecast was near the low end of a central bank estimate of 4.5-5.4 percent for last month.

Core inflation, which strips out some volatile food and energy items, came in at an annual 5.0 percent in April from 5.6 percent in March

The Bangko Sentral ng Pilipinas said it has more room to ease monetary policy after inflation slowed to its lowest level in 16 months in April at 4.8 percent from a year ago.

"We are encouraged by the increased flexibility afforded to monetary policy by the continued improvement in the inflation outlook coupled with the stability of the financial markets," BSP Governor Amando Tetangco said in a mobile text message to reporters.

The central bank meets on May 28 to set policy rates.