16 Jul 2019, 07:00 — 3 min read
After the slight uptick in May, last month’s inflation continued to soften at 2.7%, the slowest since September 2017. Inflation for the first half of the year is now recorded at 3.4%, firmly within the government’s target of 2.0% - 4.0% for 2019.
The slower annual growth in price levels are attributed mainly to food groups such as rice, corn, meat, fish, vegetables, etc. This was primarily driven by the government’s policies addressing supply-side issues last 2018, i.e the rice tariffication law among others. In addition, the continuing decline in global oil prices, lowering domestic fuel and transport prices, contributed to the slower-than-expected June inflation level.
UnionBank’s Economic Research Unit (ERU) expects 2019 inflation to continue to slow to a year average of 3.0%, slower from the previous ERU forecast of 3.2% for 2019. This expectation is from the assumption that global oil prices will continue to decline due to a potential global economic slowdown outweighing the impact of geopoliticial events that may affect supplies in the medium term
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.
Posted byUnionBank Publication
We are a team of professionals providing relevant content to startups, micro, small and medium enterprises.
Recommended articles for you