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MANILA, March 6 (Reuters): Philippine annual inflation held regular at a 16-month low in February as larger vitality prices had been offset by decrease costs of some meals objects, because the central financial institution warned of rising inflationary dangers tied to the Russia-Ukraine battle.
The Shopper Value Index rose 3.0% final month from a yr earlier, the identical tempo recorded in January, the statistics company stated on Friday.
The headline determine got here in below the three.2% median forecast in a Reuters ballot and was close to the low finish of the central financial institution’s projected vary of two.8% to three.6% for the month.
The Philippine Statistics Authority stated it might begin releasing core inflation figures in Might, calculated utilizing a brand new 2018 base yr.
Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno stated inflation will probably speed up within the close to time period as a result of larger oil costs in addition to the impression of constructive base results.
“The BSP will proceed to carefully monitor the rising dangers to the outlook for inflation and stay vigilant towards attainable second-round results from supply-side pressures or any shifts in inflationary expectations,” he stated in an announcement.
The BSP has stored rates of interest regular at a report low since November 2020 to take care of assist for the financial system’s restoration from a pandemic-driven hunch.
The BSP has “a large arsenal” of coverage devices to reply to any attainable hostile impression from exterior shocks, Diokno stated.
Diokno has stated the BSP wouldn’t essentially comply with the U.S. central financial institution’s anticipated tightening beginning this month.
The BSP was more likely to wait till the tip of the yr earlier than elevating rates of interest, in keeping with a Feb. 1-14 Reuters ballot of economists. However some economists consider a price hike may come earlier.
“The BSP could must assess the impression of hovering vitality costs on inflation expectations,” stated Nicholas Mapa, a senior economist at ING. – Reuters
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