, Philippines

Temporary break for consumers in the Philippines?

The archipelago entered into a sweet spot of low inflation and higher growth in 2012, but things may soon change.

Domestic prices for food, transport, communications and utilities may not remain in their favorable state with the impending rise in oil prices and waning of positive base effects.

Here's more from the DBS Group Research,

CPI numbers are on tap tomorrow and an inflation reading of 2.8% YoY is expected for March. Inflation over the last few quarters has come down sharply and the broad downtrends have been seen across the food, transport, communications and utilities components of CPI. The situation will change in the coming months as favorable base effects start to wear out and rising oil prices start to impact on domestic prices. That said, the pace of increase will be mild and even with oil prices hovering above USD120/bbl, inflation could still average 4% for 2012. For 2012, the country is entering into a sweet spot of low inflation (4% in 2012 compared to 4.8% in 2011) and higher growth (4.2% in 2012 compared to 3.7% in 2011). As such, the central bank (BSP) can be expected to maintain an accommodative monetary policy stance to stimulate credit and demand growth. We see no change to the overnight borrowing rate at 4% for the rest of the year. 

Join Singapore Business Review community
A NOTE FROM SINGAPORE BUSINESS REVIEW

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.


If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.