January 2020 inflation may have eased to 2.2%

January 2020 inflation may have eased to 2.2%


UnionBank Publication

UnionBank Publication

7 Feb 2020, 16:30 — 3 min read

This January 2020 price level growth easing may have been brought by lower global oil prices, consequently pushing domestic fuel distributors to cut fuel prices, and the downward adjustment of electricity prices by the Manila Electric Company (Meralco).

Note, however, that the upward pressure of the early US-Iran tensions on global oil prices have immediately dissipated as both countries have expressed of no further escalation of hostilities. As Taal Volcano’s eruption activity continued to decline, resulting to the eventual lowering of its hazardous alert level, its upward push on prices are expected to be only temporary, and base effects seen to be less of a factor.


This forecasted January 2020 inflation easing adds firmly to the benign inflation 2020 outlook by the BSP. Thus, UnionBank’s Economic Research Unit (ERU) thinks that the BSP, through the Monetary Board, is likely to resume its easing efforts this February 6th with a 25 bps cut.


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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