Inflation

2012-2014 target also announced as BSP keeps policy rates unchanged INFLATION FORECASTS for 2010 and 2011 were cut anew yesterday by the Bangko Sentral ng Pilipinas (BSP), which continued to keep policy rates unchanged as expected.

Bangko Sentral is confident it can manage the inflationary pressures of an economic growth of up to 8 percent, as long as the government does not resort to huge borrowings and wasteful spending.

MANILA, Philippines – Private economists see a marginally higher inflation rate this year and next year due to stronger-than-expected economic growth in the first quarter as well as the slight increase in the pump prices of petroluem products as well as commodity prices, the Bangko Sentral ng Pilipinas (BSP) reported yesterday.

MANILA, Philippines – Monetary authorities see a slight uptick in inflation over the next few months in light of the wage increase approved recently by the regional wage board as well as higher commodity prices but will still be within the target range set by the Bangko Sentral ng Pilipinas (BSP).

DESPITE a recent wage hike order, the Philippines’ full-year inflation is likely to be lower on the back of easing oil prices and recovering domestic food supply, according to Metropolitan Bank and Trust Co. In its latest research note, Metrobank said its sees inflation easing to 4.7 percent this year from an earlier forecast of…

MANILA, Philippines – Monetary authorities said the P22 increase in the daily minimum wage for workers in the National Capital Region (NCR) would not fan inflation and would give the Bangko Sentral ng Pilipinas (BSP) enough room to keep its accommodative policy stance to support the economy.

ECONOMIC managers on Tuesday doused fears that the latest wage hike order would fuel inflation. The Bangko Sentral ng Pilipinas (BSP) said its baseline forecast of manageable inflation for this year and 2011 could likely hold despite the P22 increase in the minimum wage for Metro Manila.

MANILA, Philippines – Monetary authorities said over the weekend that inflation would no longer hit six percent this year in light of lower oil prices, stable commodity prices, cheaper power and water rates as well as the stronger peso.

Lower prices of fuel, electricity, rice and corn in May helped ease inflation to 4.3 percent in May, well within the government target of 3.5 to 5.5 percent, Acting Socioeconomic Planning Secretary Augusto Santos said.

MANILA, Philippines – Monetary authorities now sees lower inflation forecasts this year and next year in light of the reduction in power costs, lower oil prices, steady commodity prices, moderate liquidity growth, and the continued strengthening of the peso against the dollar.

The Bangko Sentral ng Pilipinas (BSP) said the timing and amount of wage increase is crucial to revisiting its baseline inflation forecast for this year and 2011.

MANILA, Philippines – Monetary authorities are awaiting the decision of the regional wage boards on the amount of salary increase that would be approved to be able to assess its impact on consumer prices, Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. said yesterday.

MANILA, Philippines – Monetary authorities are expected to review the country’s latest inflation forecast during the meeting of the central bank’s Monetary Board on June 3 in light of the stronger-than-expected gross domestic product (GDP) growth in the first quarter of the year.

The Bangko Sentral ng Pilipinas (BSP) said that the inflation would remain stable despite the country’s anticipated economic expansion in the coming quarters.

MANILA, Philippines – Private economists have lowered their inflation forecast for this year to an average 4.7 percent from 4.8 percent despite the decision of monetary authorities to raise the target due to higher oil prices and more expensive electricity.

EXCESSIVE government spending for election-related projects will trigger inflation and higher deficit, Nacionalista Party senatorial bet Gwen Pimentel warned on Friday.

MANILA, Philippines – Prices of consumer goods are not likely to increase despite an increase in the cost of power and the problems brought about by the El Niño, outgoing Trade Secretary Peter B. Favila said.

The Philippine central bank on Wednesday said that full-year inflation might come in lower than earlier forecast amid expectations of a moderate dry spell.

MANILA, Philippines – Private sector economists see inflation accelerating to 4.8 percent this year from 3.2 percent as the sustained rally in global commodity prices would continue to exert inflationary pressures.

Monthly inflation rate is expected to reach 5 percent in the second and third quarters of 2010, but still within the full-year target range of 3.5 percent to 5.5 percent, the Bangko Sentral said Friday.

The Monetary Board, the policy- making body of Bangko Sentral, kept its policy rates unchanged Thursday but raised its peso rediscount rate to 4 percent from 3.5 percent as it starts to unwind stimulus measures amid accelerating economic growth.

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) has raised its inflation forecast to 4.7 percent instead of four percent this year due to higher food, commodity and utility prices.

THE Bangko Sentral ng Pilipinas (BSP) said inflation this year would remain within its target, dismissing a forecast issued earlier by HSBC.

MANILA, Philippines – The nationwide inflation rate rose to an eight-month high of 4.4 percent in December due to higher oil and food prices, the National Statistics Office (NSO) reported yesterday.

MANILA, Philippines – For the first time, and perhaps the last time during her presidency, President Arroyo, placed the entire country under price control after tropical storm Ondoy hit Metro Manila and some surrounding provinces. She regulated the prices of basic goods and services.

MANILA, Philippines–The Bangko Sentral ng Pilipinas will likely keep its policy rates at current record lows until the middle of 2010 to further boost the economy, which is seen to recover only modestly from the impact of the global economic crunch.

MANILA, Philippines – Public transport groups condemned yesterday the latest increase in the pump prices of gasoline and other petroleum products.

Manufacturers of construction materials want the Department of Trade and Industry (DTI) to clarify whether the price ceiling on their products should be based on the average prices in the last three months, or on the prices just before the state of calamity was declared. Jesus Arranza, Federation of Philippine Industries president, said that manufacturers…

Not only will the Arroyo-declared state of calamity be in force for a full year, even after President Arroyo steps out of Malacañang on June 30, 2010, but also warrantless arrests of businessmen will be the practice of the administration if they are caught resorting to overpricing of goods which have a mandated price ceiling.

I had a rather long telephone conversation last Monday with Department of Trade and Industry (DTI) Secretary Peter Favila. He called me up after reading my column “Favila hits the ceiling” which appeared on that day. Favila explained to me where he was coming from when he took a swing at media while briefing President…