CPI up for 4th straight month to 3.9% (lower than expected)
The Philippine Statistics Authority (PSA) [link] reported that the consumer price index (CPI) data for May revealed that headline inflation for that month was up 3.9% y/y (as compared to the CPI level for May 2023). This is the fourth straight month where inflation has quickened on a year-on-year basis, but the 3.9% inflation figure was actually lower than what economics expected (median estimate was 4.0%) and still within the BSP’s target inflation range (2.0% to 4.0%). The average inflation year-to-date is 3.5%, which is what the BSP expects we will average through all of FY24. The BSP’s Governor, Eli Remolona, said that the Monetary Board “could go first” in cutting interest rates ahead of the US Federal Reserve, and said that the first cut could come as early as August.
