May inflation higher-than-expected at 3.2%

May inflation higher-than-expected at 3.2%

Economy

UnionBank Publication

UnionBank Publication

18 Jun 2019, 10:14 — 3 min read

May headline inflation went up by 3.2%, higher than expected with consensus expectation at 2.9%. The uptrend was primarily due to higher annual rates posted in the heavily-weighted food and non-alcoholic beverages and housing, water, electricity, gas and other fuels indices.

However, there were significant slower annual growth in other indices such as, alcoholic beverages and tobacco, transport, and restaurant and miscellaneous goods and services. The higher-than-expected inflation print was highlighted to be “temporary” by the BSP. The increase may have been the impact of the damage brought about by El Nino. 

inflation


UnionBank’s Economic Research Unit (ERU) sees the BSP looking more to the long-term trend of global oil prices for further action on monetary policy. With world oil prices expected to continue to ease, BSP may more likely continue its policy rate cuts.

 

Report 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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