Producer Prices in Philippines
Philippines - Producer Prices
Inflation hits Central Bank target in April
Consumer prices rose 0.25% over the previous month in April, following March’s flat print. The increase was largely driven by higher transport costs—mainly due to rising crude oil prices. Prices for alcoholic beverages and tobacco, and housing, water, electricity, gas, and other fuels also rose notably.
Inflation softened to 3.0% in April from 3.3% in March, hitting the midpoint of the Central Bank’s target band of 3.0% plus or minus 1.0 percentage point and marking an over one-year low. Core inflation, which excludes volatile food and energy prices, ticked down to 3.4% in April from 3.5% in March, while annual average inflation inched down to 5.1% in April from 5.2% in March.
April’s encouraging print, combined with a recent credit upgrade from S&P Global Ratings, will likely give the BSP additional ammunition to consider cutting the reserve requirement ratio (RRR)—at 18.0% one of the highest in the region—or the key policy rate at its next monetary policy meeting on 9 May. BSP Governor Diokno suggested in a recent interview his intention to lower the RRR, while a rate cut would be a matter of timing.
Philippines Inflation Forecast
Met the why particular Consensus Forecast panelists expect inflation to average 3.4% in 2019, which is down 0.1 percentage points from last month’s projection. For 2020, panelists see average inflation of 3.5%.
Philippines - Producer Prices Data
|Inflation (PPI, annual variation in %)||1.6||2.7||-3.9||1.1||4.4|
5 years of economic forecasts for more than 30 economic indicators.
|Bond Yield||5.80||-4.11 %||May 11|
|Exchange Rate||52.46||0.02 %||May 13|
|Stock Market||7,742||0.66 %||May 11|
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May 16, 2019
Cash remittances from Overseas Filipino Workers (OFW) totaled USD 2.5 billion in March, which was a 6.6% increase from the same month a year prior.
May 9, 2019
At its 9 May monetary policy meeting, the Central Bank of the Philippines (BSP) cut the overnight reverse repurchase facility (RRP) to 4.50% from 4.75%, unwinding some of last year’s aggressive 175 basis point tightening.
May 9, 2019
The economy slowed notably in the first quarter of this year.
May 8, 2019
Merchandise exports contracted 2.5% in annual terms in March, falling at a sharper rate than the upwardly revised 0.1% dip logged in February (previously reported: -0.9% year-on-year).
May 7, 2019
Consumer prices rose 0.25% over the previous month in April, following March’s flat print.