FOREX TradingCharts.com

Financial News: Philippines Inflation May Exceed Target Temporarily, Centr

Philippines Inflation May Exceed Target Temporarily, Central Bank Says

06/05/2024 - 07:31:00 (RTTNews)

(RTTNews) - Consumer price inflation in the Philippines is consistent with existing projections and is likely to exceed the target range temporarily in the coming months, due to the impact of adverse weather on domestic agricultural output and positive base effects, the country's central bank Bangko Sentral ng Pilipinas said Wednesday.

Official data released earlier in the day showed headline inflation accelerated for the fourth month in a row to 3.9 percent in May from 3.8 percent in April.

That was within the BSP's forecast range of 3.7 - 4.5 percent for the month and the year-to-date average of 3.5 percent was within the government's inflation target range of 3.0 percent ± 1.0 percentage point for the year.

The BSP still expects full-year average inflation to settle within the target range for 2024 and 2025. In May, the BSP Monetary Board, governed by <a href=https://www.rttnews.com/3448357/philippine-central-bank-hints-at-rate-cut.aspx target=_blank >Eli Remolona, maintained the target reverse repurchase rate at 6.50 percent</a>, but hinted at an interest rate reduction in the third or fourth quarter of this year.

The bank lowered the inflation outlook for this year to 3.8 percent from 4.0 percent, while the projection for 2025 was raised to 3.7 percent from 3.5 percent.

The acceleration in headline inflation in May was due to an increase in non-food inflation owing to higher electricity rates and an uptick in transport inflation. Food inflation slowed, but remained high in May, given the double-digit rice inflation, the BSP said.

Core inflation, which excludes volatile food and energy items, slowed further to 3.1 percent in May from 3.2 percent in April.

Prices rose a seasonally adjusted 0.3 percent month-on-month after a 0.2 percent increase in the previous month.

"Expensive rice is the main driver for inflation but we could see a steep drop in rice inflation after the Philippine government halved the tariff for imported rice, down to 15%," economists at ING said ahead of the release of the data.

"The BSP Governor is now talking up the prospect of cutting ahead of the Fed, something that is not helping the PHP."

The Philippine central bank's next rate-setting session is on June 27.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2024 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


Australia Unemployment Data Due On Thursday (29 min(s), 55 sec(s) ago)
(RTTNews) - Australia will on Thursday release May figures for unemployment, highlighting a light ...Full Story»

What Makes This Economist Think Two Fed Rate Cuts Are Possible This Year? (55 min(s), 55 sec(s) ago)
(RTTNews) - The U.S. Federal Reserve left the federal funds rate target unchanged on Wednesday and ...Full Story»

Fed Leaves Interest Rates Unchanged, Forecasts Just One Rate Cut This Year (55 min(s), 55 sec(s) ago)
(RTTNews) - While announcing its widely expected decision to leave interest rates unchanged on Wed ...Full Story»

U.S. Crude Oil Inventories Unexpectedly Jump By 3.7 Million Barrels (13 min(s), 55 sec(s) ago)
(RTTNews) - Crude oil inventories in the U.S. unexpectedly saw a significant increase in the week ...Full Story»

U.S. Consumer Prices Unexpectedly Flat In May, Annual Growth Slows To 3.3% (58 min(s), 55 sec(s) ago)
(RTTNews) - With a steep drop in gasoline prices partly offsetting a continued increase in shelter ...Full Story»

Thailand Leaves Policy Rate Steady At 2.50% (53 min(s), 55 sec(s) ago)
(RTTNews) - Thailand's central bank decided to keep the interest rate unchanged for the fourth ...Full Story»

India Industrial Output Growth At 3-Month Low (52 min(s), 55 sec(s) ago)
(RTTNews) - India's industrial production growth moderated to a three-month low in April but t ...Full Story»

U.S. Mortgage Applications Show Substantial Rebound (40 min(s), 55 sec(s) ago)
(RTTNews) - After reporting two consecutive weekly decreases in U.S. mortgage applications, the Mo ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Australia Unemployment Data Due On Thursday

06/12/2024 - 18:01 PM (RTTNews)
(RTTNews) - Australia will on Thursday release May figures for unemployment, highlighting a light ...Full Story>>

What Makes This Economist Think Two Fed Rate Cuts Are Possible This Year?

06/12/2024 - 15:27 PM (RTTNews)
(RTTNews) - The U.S. Federal Reserve left the federal funds rate target unchanged on Wednesday and ...Full Story>>

Fed Leaves Interest Rates Unchanged, Forecasts Just One Rate Cut This Year

06/12/2024 - 14:27 PM (RTTNews)
(RTTNews) - While announcing its widely expected decision to leave interest rates unchanged on Wed ...Full Story>>

U.S. Crude Oil Inventories Unexpectedly Jump By 3.7 Million Barrels

06/12/2024 - 10:45 AM (RTTNews)
(RTTNews) - Crude oil inventories in the U.S. unexpectedly saw a significant increase in the week ...Full Story>>

U.S. Consumer Prices Unexpectedly Flat In May, Annual Growth Slows To 3.3%

06/12/2024 - 09:30 AM (RTTNews)
(RTTNews) - With a steep drop in gasoline prices partly offsetting a continued increase in shelter ...Full Story>>

Do not sell my personal information

Copyright © 2024. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.