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Inflation, Peso in Focus as Risks Mount in Marcos’s Early Days

  • Peso slump boosts customs revenue but makes USD debt expensive
  • Purchasing power drop could affect Marcos popularity: analyst
President Ferdinand Marcos Jr.

President Ferdinand Marcos Jr.

Photographer: Victor J. Blue/Bloomberg

The Philippine currency plunging to a record low and inflation at a four-year high have taken centerstage in the early days of President Ferdinand Marcos Jr’s term, risking faster economic recovery and his popularity. 

The nation’s central bank has embarked on one of the region’s most-aggressive monetary tightening to rein in price pressures, which if not contained have a tendency to spur discontent. In Pulse Asia Research Inc.’s survey last month, managing inflation was the top priority for the respondents and nearly half disapproved of the government’s performance.