Philippines: Inflation jumped in March – UOB

Pablo Piovano FXStreet

UOB Group’s Senior Economist Julia Goh and Economist Loke Siew Ting comment on the latest release of inflation figures in Philippines.

Key Takeaways

“Headline inflation accelerated at a faster pace of 4.0% y/y in Mar (from +3.0% in Feb), surpassing our estimate (3.6%) and Bloomberg consensus (3.7%). It was primarily driven by surging fuel and food prices amid upward adjustments in electricity rates and a weaker Peso against USD.”

“We have raised our 2022 full-year inflation target to 4.5% (from 3.5% previously; BSP est: 4.3%; 2021: 3.9%), after taking into consideration a higher-than-expected inflation outturn and broad-based price increases in Mar. Our revision also rests on the continued upward pressure on commodity prices and supply chain snags brought by the prolonged Russia-Ukraine conflict as well as the recovery momentum in domestic demand following easing of COVID-19 containment measures and border reopening since Feb. The ongoing petitions for a hike in minimum wage and public transport fare will add further upside risks to the nation’s inflation outlook.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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