Analyst viewsAnalysts polled by The Manila Times all expect inflation to continue topping 4.0 percent, which could pressure monetary authorities to hike key interest rates anew following an adjustment last month. “I expect the persistently rising inflation to raise inflation expectations and therefore, to probably result an another policy rate hike of 25 basis points that we expect to take place in the third quarter,” he noted. Analysts from Land Bank of the Philippines and Metrobank Research, meanwhile, forecast May inflation of 5 percent. However, we would ascribe a higher probability to rate hike in June should inflation surprise [at]over 5 percent,” the economist continued. However, it admitted that supply problems were continuing to affect food inflation, with vegetable prices accelerating by 1.4 percent month-on-month from negative levels since February.

Source: Manila Times June 03, 2018 16:30 UTC