Skip to main content

PH economy should do well with easing inflation

PH economy should do well with easing inflation

Photo from Flyingketchup.com

MORE GOOD NEWS FOR FILIPINOS. Economists are seeing that inflation rates will ease below the 2% target of the Banko Sentral ng Pilipinas (BSP) by Q3 of 2019.
This current downtrend of inflation means that consumers are enjoying lower prices of basic necessities. It also makes it the perfect time to buy goods and services to help the economy.
According to Standard Chartered Bank economist for Asia Chidu Narayanan, inflation is expected to further drop below 2% in August and September. This drop is expected after inflation eased to a 31-month low of 2.4% in July.
“We expect inflation to drop below two percent in August-September, in line with our view from the beginning of the year, helping push average inflation in 2019 down to 2.7 percent. A combination of lower food prices, lower oil prices, and a high base effect will help contain inflation,” said Narayanan.
HSBC economist Noelan Arbis echoed the sentiment. He said that inflation is expected to continue to drop below the BSP’s 2-4% target range for the year in September.
“Headline inflation continues to cool as expected, and it is likely to drop further in the months ahead. The contribution of food, alcoholic drinks, and tobacco prices to headline prices are their lowest levels in nearly three years, which is a sharp reversal from last year’s trend,” said Arbis.
He added that core inflation remains largely stable, while oil prices continue to drop.
“We expect headline inflation to average three percent in 2019, factoring in possible upside surprises during the typhoon season. It is worth noting that El Niño, which transpired in the first half of the year, risks stronger typhoons in the second half,” explained Arbis.
READ: Philippine Economic Growth to Pick Up in 2019 – AMRO

Inflation downtrend means lower prices and interest rates

This downtrend gives the BSP more room to ease their monetary policy stance to boost the country’s economy.
In the first seven months of the year, inflation averaged 3.3%. To compare, in the same period from the previous year, inflation accelerated to 5.2% from 2.9% in 2017. This exceeded the BSP’s 2-4% target due to elevated oil and food prices, as well as a weak peso.
READ: June inflation sinks to 2.7%
Since inflation is currently within the target of the BSP, interest rates are low, making it the perfect time to borrow money. And with lower commodity prices, more Filipinos will be empowered to spend and simulate the economy further.
In addition, the Philippine economy remains attractive for foreign investors. This is most evident in the continued support for the government’s “Build, Build, Build” infrastructure program. 2020 should be a big year for infrastructure, which hinges on a speedy passage of the new year’s budget.

Source and Original Article:>>> flyingketchup.com

Comments

Post a Comment
Related Posts Plugin for WordPress, Blogger...

Popular posts from this blog

NYU alumna details how LP's grand plan will backfire them down: "Aquino name will do more harm than good"

Benigno "Noynoy" Aquino | VP Leni Robredo | Sen. Antonio Trillanes  If the grand plan of the Yellows is to turn to the name of the Aquinos as a means to save the Liberal Party (LP) in a last ditch effort then it will surely backfire. This is the sentiment of social media influencer Krizette Laureta Chu when she detailed how the LP is on a losing end as more and more of its prominent members successively fail to rake in new supporters, contrary to what they hoped to achieve. With Vice President Leni Robredo as their Opposition Leader, Chu opines that the constant mocking of the Vice President’s competence (or lack thereof) has led to a “wakeup call” for the Yellow political party to find a different means (or different person) to bring into the scene. When the Yellow political party turned to Senator Antonio Trillanes IV, he had resorted to creating a fuss about threats on his life by rounding up more security forces around him which, unfortunately, bac...
2 comments
Read more

The 4 Amazing Health Benefits of Saluyot Leaves.

Saluyot, photo from  YouTube Illness prevention and cure do not need to be expensive. Most Filipinos opt to take herbal medicines first before indulging with costly medicines with or without doctor’s advice. The vegetables we often find in the market are not just there as plainly ingredients but also a source of vitamins and minerals. One is saluyot. What Is Saluyot? Corchorus olitorious or saluyot has many health benefits. It is used for food consumption because of its high nutritional value. It is considered as a health booster. This leafy veggie belongs to the Malvaceae family and grows on tropical areas. This herbal plant carries vitamins and minerals. It is an abundant source of vitamin A, C, E, calcium, iron, and dietary fibers. Saluyot, photo from  Tagalog Lang Amazing Benefits of Saluyot  Promotes good eyesight Saluyot has beta-carotene content which promotes good eyesight. Its richness in vitamin A will help you prevent or avoid ...
Post a Comment
Read more

A GOOD Proposal from Department of Agriculture and Fisheries which is benificial to Farmers and Fishermens

Key to productivity DAF, PROPOSES EASY ACCESS CREDIT, FINANCING PROGRAM By Manny Piñol The Department of Agriculture and Fisheries (DAF) is proposing an easy access credit facility which would allow farmers and fisher folks to avail of government financing for food production without collateral, a 6% interest rate per year and a minimum loan maturity period of at least three to eight years. The scheme, called the Farmers and Fishermen Quick Credit Facility (FFQCF), proposes a P50-B loan portfolio which would offer only production loans of not more than P50,000 per farmer or fisherman to be handled by an agency which will be created by law or existing credit cooperatives and organizations. The repayment period of the loan will depend on the commodity that a farmer or fisherman will be producing, like three years for rice, corn, banana, sugarcane or fish drying facilities and eight years for coconut, mango, cacao, coffee or palm oil. This modified repayment per...
Post a Comment
Read more