Philippines: Inflation likely to bounce to 1.3% in November – ING
|Nicholas Mapa, senior economist at ING, suggests that after falling to 0.8% in October, they are expecting Philippine inflation to bounce to 1.3% as base effects from last year’s spike fade quickly out.
Key Quotes
“We expect inflation to revert back to the midpoint of the BSP’s 2-4% inflation target next year and to average 3.2% in 2020. Inflation for the most heavily weighted sub-group (food and beverages are 38% of the basket) will also stay subdued due to imports and better weather conditions. Meanwhile, with global growth forecast to sputter next year, we expect subdued commodity prices to limit both energy and transport costs for the Philippines.”
“Bangko Sentral ng Pilipinas (BSP) Governor Diokno kept the door open for a rate cut at the 12 December meeting, indicating that he will take his cue from inflation data to decide if further action is appropriate. Given that we predict inflation to rebound to 1.3% from 0.8%, BSP will likely pause at its last meeting of the year.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.