Philippine inflation seen easing to nearly three-year low in August: Reuters poll By Reuters

Philippine inflation seen easing to nearly three-year low in August: Reuters poll By Reuters

MANILA (Reuters) – Philippine annual inflation in August likely dropped below the bottom range of the central bank’s target range for the year, due to a high base effect and a drop in rice and utility prices, a Reuters poll showed.

The Bangko Sentral ng Pilipinas (BSP) had set a 2%-4% target range for the year.

The median forecast in a Reuters poll of 11 economists was for the Consumer Price Index (CPI) to have risen 1.8% in August from a year earlier, the weakest since October 2016, and easing from previous month’s gain of 2.4%.

The estimate, if it proves to be correct, could seal the deal for a third interest rate cut this year.

Slowing inflation allowed the central bank to cut rates twice by a total of 50 basis points in May and August to give the Philippine economy a lift and buffer it from the fallout from the U.S.-China trade war.

BSP Governor Benjamin Diokno has flagged a further quarter-point interest rate reduction before the end of 2019 to shore up economic growth, which slipped to its weakest in 17 quarters in April-June.

The central bank next meets on Sept. 26 to review policy.

BSP raised the rates by a total of 175 basis points last year to rein in inflation, which peaked at a near-decade high of 6.7% in September and October.

Inflation is seen to average 2.6% this year and 2.9% next year, the central bank has said, well within its target of 2%-4% for both years.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link