Inflation Accelerates On Electricity Rate Hike

Economic Research	8 March 2017
Philippines
Economic Update
Inflation Accelerates On Electricity Rate Hike Headline inflation increased to 3.3% YoY in February, from +2.7% in January. This was due mainly to a faster increase in the heavily-weighted cost of housing & utilities, and prices of food. Going forward, we lift our headline inflation forecast further to 3.3% in 2017, from the +3% projected earlier, and +1.8% in 2016. This is on: 1. Higher crude oil prices and hence domestic fuel prices; 2. Upward adjustment in electricity rate; 3. Resilient domestic demand; 4. Proposed tax policy reform programme. Economist:  Rizki Fajar  | +6221 2970 7065