Inflation likely averaged below BSP target – FMIC
CEBU, Philippines - Inflation is likely to average only slightly faster in the second quarter to 1.4 percent, still way below the central bank's 2-4 percent target, according to First Metro Investment Corp.
In a research note for May, FMIC, investment bank of Metrobank group, said: "This would allow consumers greater leeway to increase spending..."
"And while crude oil prices have bounced back from their lows in January, few really think any major breakaway from the $40/barrel level."
The Bangko Sentral ng Pilipinas projects inflation at between 1.1-1.9 percent in May.
The Philippine Statistics Authority is to release May inflation data on June 7.
In April, inflation grew 1.1 percent. On average, prices of basic goods grew 1.1 percent in the first four months of 2016.
FMIC further noted that monetary policy is expected to remain steady at least up to the third quarter, as inflation is very much under control and money growth has only begun to rise at a pace slightly above 10 percent.
"We do not expect much improvement in the export front, as the US economy appears to have weakened in Q1. OFW remittances continue to confound pessimists and we think they
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