Invest Daily Pro
  • Economy
  • Investing
No Result
View All Result
  • Economy
  • Investing
No Result
View All Result
Invest Daily Pro
No Result
View All Result
Home Top News

IMF: Inflation risks still tilted to upside

by
October 28, 2024
in Top News
0
IMF: Inflation risks still tilted to upside
0
SHARES
11
VIEWS
Share on FacebookShare on Twitter
A vendor at Paco Market is seen arranging meat products. — PHILIPPINE STAR/EDD GUMBAN

By Luisa Maria Jacinta C. Jocson, Reporter

THE INTERNATIONAL Monetary Fund (IMF) said that upside risks to the outlook for Philippine headline inflation still persist.

“Risks to the inflation outlook have receded somewhat but remain tilted to the upside,” a representative of the IMF told BusinessWorld in an e-mail.

“Food prices remain vulnerable to adverse supply shocks, and rising geopolitical tensions and recurrent commodity price volatility also pose upside risks,” it added.

Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr. earlier said that the balance of risks to the inflation outlook for next year until 2026 has shifted to the upside.

This is primarily due to expectations of higher electricity rates and minimum wages, he said.

Regional wage boards earlier this month approved a hike in the daily minimum wages of workers in Cagayan Valley, Central Luzon and Soccsksargen.

In July, the Regional Tripartite Wages and Productivity Board also approved a P35 minimum daily wage hike for workers in the National Capital Region.

Meanwhile, the IMF sees inflation settling at 3.3% this year and 3% in 2025.

The BSP expects inflation to average 3.1% this year and accelerate to 3.2% next year and 3.4% in 2026.

The IMF said that “decisive monetary tightening and non-monetary measures” have helped tame food inflation in the Philippines.

“Lower commodity prices have helped bring inflation down to within the BSP’s target band,” it said.

Headline inflation eased to 1.9% in September from 3.3% in August. The September print was also the slowest in over four years or since the 1.6% print in May 2020.

Food inflation slowed to 1.4% from 4.2% a month ago. This as rice inflation sharply slowed to 5.7% in September from 14.7% in August and 17.9% last year.

“The BSP reduced its policy rate by 25 basis points (bps) in both its August and October meetings this year, consistent with inflation and inflation expectations returning towards the target,” the IMF said.

Since it began its easing cycle in August, the Monetary Board has reduced policy rates by 50 bps, bringing the key rate to 6%.

Mr. Remolona earlier said the central bank could deliver another 25-bp rate cut at the last policy-setting review on Dec. 19.

CURRENT ACCOUNTMeanwhile, the IMF sees the country’s current account deficit further easing in the near term.

“The narrowing of the current account deficit in 2024 and 2025 will be supported by lower commodity prices, a gradual pickup in exports, supported by tourism returning towards pre‑pandemic levels and demand for the business process outsourcing sector holding up,” the IMF said.

The IMF expects the Philippines’ current account deficit to settle at 2.2% of gross domestic product (GDP) this year and ease further to 1.8% in 2025 and 1.1% by 2029.

“Inward remittances are also expected to rise slightly,” it added.

In the January-August period, cash remittances expanded by 2.9% to $22.22 billion from $21.58 billion a year earlier. The BSP expects cash remittances to grow by 3% this year.

“Over the medium term, the current account is expected to be supported by a continued gradual rise in exports,” the IMF said.

“From a saving‑investment perspective, the current account improvement is expected to be driven by a rise in private and public savings, with the latter underpinned by the government’s plans to implement a gradual medium-term fiscal consolidation,” it added.

In the first half of the year, the country’s current account deficit stood at $7.1 billion, accounting for 3.2% of GDP.

The BSP expects the current account deficit to reach $6.8 billion this year or 1.5% of GDP.

ShareTweetPin

Related Posts

Have a taste of the perfect day in paradise with SULÀ Spirits
Top News

Have a taste of the perfect day in paradise with SULÀ Spirits

January 8, 2025
First months of 2025 likely rainy amid La Niña conditions, says PAGASA
Top News

First months of 2025 likely rainy amid La Niña conditions, says PAGASA

January 8, 2025
December inflation rises to 2.9%
Top News

December inflation rises to 2.9%

January 7, 2025
Outstanding debt hits fresh high of P16.09T
Top News

Outstanding debt hits fresh high of P16.09T

January 7, 2025
Outstanding debt hits fresh high of P16.09T
Top News

Outstanding debt hits fresh high of P16.09T

January 7, 2025
PHL end-December dollar reserves drop to $106.8B
Top News

PHL end-December dollar reserves drop to $106.8B

January 7, 2025
Next Post
on the Sustainable Side
Experience Sustainability at ReBreathe Festival 2025: Stroll Towards a Greener Future

on the Sustainable Side Experience Sustainability at ReBreathe Festival 2025: Stroll Towards a Greener Future

Recommended

Delivering on a dream

Delivering on a dream

October 3, 2024
Andrew Garfield and Elmo are going viral with their moving chat. Celebrities can help us talk about grief

Andrew Garfield and Elmo are going viral with their moving chat. Celebrities can help us talk about grief

October 31, 2024
Major exhibit marks MADE art tilt’s 40th year

Major exhibit marks MADE art tilt’s 40th year

September 24, 2024
How EOR Services Facilitate Global Workforce Management?

How EOR Services Facilitate Global Workforce Management?

September 29, 2024
The Best Five Sectors, #14

The Best Five Sectors, #14

April 6, 2025
Damosa Land, Inc.’s first agri-residence project in Davao seen ready by 2027

Damosa Land, Inc.’s first agri-residence project in Davao seen ready by 2027

November 18, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 InvestDailyPro. All Rights Reserved.

    Disclaimer: InvestDailyPro.com, its managers, its employees, and assigns (collectively InvestDailyPro ) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
    The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    No Result
    View All Result
    • About us
    • Contact us
    • Home
    • Privacy Policy
    • Suspicious engagement
    • Terms & Conditions
    • Terms & Conditions
    • Thank you

    Copyright © 2024 investdailypro.com | All Rights Reserved