Philippine headline inflation likely accelerated in January - DBS Bank

Philippine inflation data for the month of January is set to release tomorrow. According to a TD Economics research report, the headline inflation is likely to have accelerated a bit to 2.7 percent from December’s 2.5 percent.

Many drivers include increased prices o LPG and increase of tobacco excise taxes. Governor Diokno had mentioned that BSP might have another 50 basis points space to unwind the 2018 monetary tightening in 2020 to stimulate growth.

“We think that BSP could cut by 25bps at this week’s policy meeting to boost economic growth further and save more bullets for later this year as global risk such as Coronavirus outbreak might impact the economy through tourism receipts”, added DBS Bank.