Inflation Stabilises In April

Economic Research	8 May 2017
Philippines
Economic Update
Inflation Stabilises In April Headline inflation stabilises at 3.4% YoY in April, from the same pace in March, as faster increases in the heavily-weighted cost of food, transport, and communication was offset by a moderation in the costs of housing & utilities and restaurants. Going forward, we forecast inflation to rise to 3.3% in 2017, from +1.8% in 2016. This is premised on: 1. Higher domestic fuel prices compared to a year earlier; 2. An upward adjustment in electricity rate; 3. Resilient domestic demand; 4. The proposed tax policy reform programme. Economist:  Rizki Fajar  | +6221 2970 7065