ECONOMY | Staff Reporter, Philippines

Philippine inflation to peak in Q3 2011

The country's headline inflation likely edged up to 4.7% in August.

According to Standard Chartered, the slow economic growth in Q2 affected their near-term inflation outlook.

Here’s more from StanChart:

Headline inflation likely edged up in August CPI inflation likely edged up to 4.7% (2000=100) in August after a brief pause in July. Prices of rice and vegetables continued to rise, and the increase in power tariffs by the country’s largest electricity distributor helped to push up headline inflation. However, the stabilisation of commodity prices, namely for oil, is expected to have mitigated inflationary pressure.

We expect headline CPI inflation to peak in Q3 as slower-than-expected economic growth in Q2 (on the back of the global economic soft patch) weighs on the near-term inflation outlook. We now expect Bangko Sentral ng Pilipinas (BSP) to hold off on tightening until Q1-2012 (previously Q4-2011), when either the global economy stabilises or possibly, QE3 pushes up the inflation outlook. 

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.