Headline inflation eased to 3.1% YoY in May, from +3.4% in April, on the back of a slower increase in the heavily-weighted prices of food, alcoholic beverages & tobacco, clothing, transport, health, housing equipment, recr

Economic Research	7 June 2017
Philippines
Economic Update
Inflation Eases In May Headline inflation eased to 3.1% YoY in May, from +3.4% in April, on the back of a slower increase in the heavily-weighted prices of food, alcoholic beverages & tobacco, clothing, transport, health, housing equipment, recreation & culture and communication. 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 rates; 3. Resilient domestic demand; 4. The proposed tax policy reform programme. Economist:  Rizki Fajar  | +6221 2970 7065