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April 2019 inflation eases further

April 2019 inflation eases further

Economy

UnionBank Publication

UnionBank Publication

28 May 2019, 09:43 — 3 min read

Headline inflation slowed down further to 3.0% last month which is the lowest inflation print since January last year. Market consensus was at 3.1% with UnionBank’s Economic Research Unit (ERU) expecting April inflation at 3.1% as well.



Inflation


The slowdown was mainly observed from slower annual increase in the heavily-weighted food and non-alcoholic beverages index at 3.0%. Slower annual upticks were also noted in much of the indices in the inflation basket.
 

The last month’s print brings the annual headline average to 3.6%, which ERU thinks is “not well-entrenched” yet within the government’s target of 2.0-4.0%.


Upside price pressures, such as the continued increase in global oil prices and the probable prolonged impact of the El Nino, may keep the BSP from cutting interest rates. However, a reserve requirement ratio cut may be coming this Thursday at the Monetary Board meeting.


Article by Ruben Carlo Asuncion


Disclaimer: 
While this document is based on information obtained from sources we believe to be reliable, we do not make any representations as to its accuracy, completeness, correctness, timeliness or use for any particular purpose. Opinions and statements expressed here are those of their author(s) as of the date of this report and not of Union Bank of the Philippines (UBP). The opinions and statements provided in this document are subject to change without prior notice. Any recommendation contained in this document does not have regard to the reader’s particular investment objectives, financial situation and any other specific needs. This document is for informational purposes only and UBP is not soliciting any action based on it. Nothing here shall to any extent substitute for the independent investigations and the technical and business judgment of the reader. Your use of this document and any of its contents is at your own risk and UBP does not accept any liability for the results of any action or decision taken on the basis of or reliance on this document or any of its contents.

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