Smarter News Now
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting
No Result
View All Result
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
No Result
View All Result
Smarter News Now
No Result
View All Result
Home Investing News

Inflation likely quickened in July

by
July 31, 2022
in Investing News
0
Inflation likely quickened in July
0
SHARES
6
VIEWS
Share on FacebookShare on Twitter
A baker carries trays of pandesal in Mendiola, Manila, July 11. — PHILIPPINE STAR/ MIGUEL DE GUZMAN

By Keisha B. Ta-asan 

INFLATION likely accelerated in July due to higher food prices and transport fares, but a cut in electricity rates and rollback in pump prices may have tempered the price pressures, according to analysts.

A BusinessWorld poll of 14 analysts yielded a median estimate of 6.2% for July inflation, well within the 5.6-6.4% forecast of the Bangko Sentral ng Pilipinas (BSP).

This would also be faster than the 6.1% print seen in June and the 3.7% in July 2021, as well as exceed the BSP’s 2-4% target band for the fourth straight month.

If realized, the July print would be the highest in 45 months or nearly 4 years since 6.9% in October 2018.

The Philippine Statistics Authority (PSA) will release the July consumer price index (CPI) data on Friday. 

“Inflation for the month was driven by the continued increase in food prices, further transport fare hikes, and peso depreciation,” the BSP said in a press release on Friday evening.   

Prices of food have gone up in recent weeks, reflecting the impact of higher oil prices and the weaker peso against the US dollar.

“Meanwhile, lower oil prices, reduction in electricity rates in Meralco-serviced areas, and lower pork prices are likely to temper in part said price pressures,” the BSP said.

Customers of Manila Electric Co. (Meralco) saw lower electricity bills in July after the overall rate went down by P0.7067 to P9.7545 per kilowatt-hour (kWh).

“We estimated that inflation in July slowed down to 5.8% as the decline in the prices of oil, electricity in Meralco-serviced areas, and some food such as meat and fish,” Domini S. Velasquez, chief economist at China Banking Corp., said in an e-mail. 

Sun Life Financial economist Patrick M. Ella said the slowdown in global oil prices and successive pump price cuts may have slowed the monthly gain in the CPI.

Fuel retailers cut pump prices in July as global oil prices have eased below $100 per barrel in recent weeks.

In July alone, oil companies cut pump prices for gasoline by P11.1 per liter, diesel by P12.95 per liter, and kerosene by P11.7 per liter.

“The higher jeepney fares could offset lower gasoline and diesel pump prices,” Philippine National Bank economist Alvin Joseph A. Arogo said.   

Starting July, traditional public jeepneys nationwide raised the minimum fare to P11 from P9 and P10, depending on the region. Modern public jeepneys nationwide also increased fares to P13, from P12 currently for the first four kilometers.

“Transportation cost primarily is a concern for all production inputs which is a basic input to all production processes,” Colegio de San Juan de Letran Graduate School Associate Professor Emmanuel J. Lopez said in an e-mail.

Inflation is expected to remain elevated in the second semester, due to second-round effects from the hike in minimum daily wage.

“We expect high inflation to persist in the second half of 2022. Food and oil prices will likely remain elevated but will moderate moving forward,” Ms. Velasquez said. 

“Moreover, we believe that the second-round effects will likely be more pronounced during the rest of the year due to the recent increase in the country’s minimum wage,” Mr. Arogo added.

REVISIONS?At its June meeting, the Monetary Board raised its average inflation forecast for 2022 to 5%, from 4.6% previously. It also hiked its average inflation forecast for 2023 to 4.2%, from 3.9% previously. For 2024, BSP expects inflation to average 3.3%. 

BSP Governor Felipe M. Medalla told reporters on Friday evening that they are considering revisions to the inflation forecast for next year.

“In all likelihood, we will revise the inflation number down… For this year, we won’t change it too much. Exactly how much? We still don’t know,” he said.

In a bid to arrest soaring inflation, the BSP raised its benchmark rates by 75 basis points (bps) in an off-cycle move on July 14. The Monetary Board has raised policy rates by a total of 125 bps this year.

“The recent off-cycle hike by the central bank will help relieve the inflationary pressure locally although upside risks coming from global factors remain significant,” Robert Dan J. Roces, chief economist at Security Bank Corp., said in an e-mail.   

Mr. Medalla already signaled the BSP is likely to deliver another rate increase ranging between 25 bps and 50 bps on Aug. 18 depending on the inflation outturn for July as well as the gross domestic product (GDP) growth for the second quarter of the year.   

The aggressive rate hikes helped stabilize the peso as the local unit closed at P55.13 per dollar on Friday, gaining 69 centavos from its P55.82 finish on Thursday, based on Bankers Association of the Philippines data.

“Looking ahead, the BSP will continue to monitor closely emerging price developments to enable timely intervention to arrest emergence of further second-round effects, consistent with BSP’s mandate of price and financial stability,” the central bank said on Friday.

ShareTweetPin

Related Posts

Senate grills Rodriguez on approval procedures for sugar import order
Investing News

Senate grills Rodriguez on approval procedures for sugar import order

August 23, 2022
Trade dep’t expecting sugar price monitoring report by Friday
Investing News

Trade dep’t expecting sugar price monitoring report by Friday

August 23, 2022
Fisherfolk seek halt to reclamation on municipal fisheries
Investing News

Fisherfolk seek halt to reclamation on municipal fisheries

August 23, 2022
Supreme Court rules petitioners have no standing in PDS ‘monopoly’ case
Investing News

Supreme Court rules petitioners have no standing in PDS ‘monopoly’ case

August 23, 2022
ERC signals planned overhaul of regulatory practices via benchmarking exercise with regional counterparts
Investing News

ERC signals planned overhaul of regulatory practices via benchmarking exercise with regional counterparts

August 23, 2022
Malaysian trade official urges PHL to sign up for RCEP  
Investing News

Malaysian trade official urges PHL to sign up for RCEP  

August 23, 2022
Next Post
Table games you can find within online casinos

Table games you can find within online casinos

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Email Address *
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!
 

Recommended

All I want for Christmas is a reality check

All I want for Christmas is a reality check

August 15, 2022
Do Not Use Solulab, CEO of Y Coin Youssof Altoukhi Warns

Do Not Use Solulab, CEO of Y Coin Youssof Altoukhi Warns

August 7, 2022
ACEN income surges 25% as new plants deliver

ACEN income surges 25% as new plants deliver

August 9, 2022
Baguio solicits proposals for hydroelectric, bulk water, cable car projects 

Baguio solicits proposals for hydroelectric, bulk water, cable car projects 

August 23, 2022
Remittances hit 6-month high in June

Remittances hit 6-month high in June

August 15, 2022
Financial system is both institutions and markets

Financial system is both institutions and markets

August 11, 2022
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting

Copyright © 2022 SmarterNewsNow.
All Rights Reserved.

Disclaimer: SmarterNewsNow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

No Result
View All Result
  • About Us
  • Contact Us
  • Email Whitelisting
  • Home
  • Privacy Policy
  • Terms & Conditions
  • Thank You

Copyright © 2020 SmarterNewsNow. All Rights Reserved.