Inflation & Prices
Philippine Inflation Seen to Breach Target, Defer Rate Cuts
- Rice inflation surges 24.4%, fares and wages may also go up
- Central bank previously saw inflation returning to goal in 3Q
Rice inflation came in at 24.4% during the month, data showed, after quickening 23.7% the previous month, which was then the highest since February 2009.
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Philippine inflation will likely breach the 2%-4% target range through the third quarter on the back of higher food and fuel prices, potentially delaying any monetary easing from the central bank this year.
The Bangko Sentral ng Pilipinas said on Friday that price gains could temporarily accelerate above 4% in the next two quarters as adverse weather conditions hit farm output and stoke food costs. Rising oil prices could push up transport fares, while minimum wage may also increase, it said in a statement after inflation quickened for a second month in March to 3.7%.