Inflation On Upward Trend But Still Within 2017’s Target

Economic Research	24 February 2017
Philippines
Economic Update
Inflation On Upward Trend But Still Within 2017’s Target Philippines’s consumer price index (CPI) increased to 2.7% in January, and has been on an upward trend in recent months. We expect inflation to continue rising throughout this year, mainly led by higher fuel and administered price inflation. We expect CPI to rise +3% in 2017 (vs +1.8% in 2016), boosted by: 1. Higher fuel and commodity prices; 2. Impending adjustments to the electricity rate; 3. Resilient domestic demand; 4. Government’s broad fiscal reform programme; 5. Weaker PHP. Economist:  Rizki Fajar  | +6221 2970 7065