Advertising
Advertising
twitter
youtube
facebook
instagram
linkedin
Advertising

Philippines: Inflation edges lower again in April

Philippines: Inflation edges lower again in April| FXMAG.COM
Aa
Share
facebook
twitter
linkedin

Table of contents

  1. Headline inflation YoY change
    1. April headline inflation down to 6.6%
      1. Headline inflation falls more than expected
        1. BSP likely to consider a pause

          Headline inflation continues to moderate, falling to 6.6%YoY in April

          philippines inflation edges lower again in april grafika numer 1philippines inflation edges lower again in april grafika numer 1
          Source: Shutterstock
          6.6%

          Headline inflation YoY change

           

          Lower than expected

          April headline inflation down to 6.6%

          Price pressures continued to moderate with April headline inflation dipping to 6.6%YoY, well below the market consensus for a 7.0% increase.  Inflation was slower for index-heavy items such as food (7.9%YoY), utilities (6.5%YoY) and transport (2.6%YoY) benefiting from lower energy prices and favourable base effects.  Overall, prices were down 0.2% from the previous month and year-to-date inflation slipped to 7.9% from 8.3% previously. 

          Despite the slowdown, headline inflation remains well above Bangko Sentral ng Pilipinas’ (BSP) target of 2-4%.  Meanwhile, we note select subsectors that reported a pickup in inflation for the month, namely personal care (5.7% vs 5.6%), restaurants and accommodation (8.6% vs 8.3%) and recreation (4.7% vs 4.6%), suggesting that robust domestic demand may be slowing the pace of moderation.

          Headline inflation falls more than expected

          philippines inflation edges lower again in april grafika numer 2philippines inflation edges lower again in april grafika numer 2
          Source: Philippine Statistics Authority

          BSP likely to consider a pause

          BSP Governor Medalla recently indicated that he would be open to a pause at the next policy meeting should inflation slow further or if prices fall.  Today’s report increases the chances of a pause from the BSP at the 18 May meeting after month-over-month inflation was negative for a second month. Slowing inflation and a relatively stable currency could be enough to convince Governor Medalla to bring his recent tightening cycle to an end. 

          Read next: The Commodities Feed: Oil looking for a floor| FXMAG.COM

          Read this article on THINK

          Tags
          Philippines inflation BSP

          Disclaimer

          This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more


          ING Economics

          ING Economics

          INGs global economists and strategists tell you whats happening and is likely to happen in the world of global markets.

          Our analysis and forecasts will help you respond and stay a step ahead in the world of macroeconomics, central banks, FX, commodities and everything else in between. Visit ING.com.

          Follow ING Economics on social media:

          Twitter | LinkedIn


          Advertising
          Advertising