MANILA, Philippines — Policymakers must closely monitor rising consumer prices, with Philippine inflation seen to keep going up to breach the central bank’s target, the International Monetary Fund said on Wednesday. Under the rebased index, the IMF expects Philippine inflation to overshoot the central bank’s target to average 4.2 percent in 2018, before cooling down to 3.8 percent next year. Last week, BSP Governor Nestor Espenilla struck a hawkish tone, saying monetary authorities won't think twice to take “decisive” action should inflation remain elevated. The BSP projects inflation to hit 3.9 percent this year and moderate to 3 percent in 2019. If realized, the IMF’s forecasts would miss the Philippine government’s 7-8 percent growth target for 2018 until 2022.

Source: Philippine Star May 09, 2018 06:33 UTC