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
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