How Philippines dodges inflation risks amidst peso weakness

2.5% inflation forecast in June has been penciled in.

According to DBS, inflation risks are unlikely to be on the radar in the near term despite expectations that robust GDP growth momentum remains intact. Lackluster commodity prices and stable food prices have gone a long way towards keeping a lid on price increases over the past few quarters.

Here's more:

With the global economy not showing any meaningful signs of a pickup, any increases in commodity prices in the coming months are likely to be muted. Moreover, barring unfavorable weather conditions,food price inflation is also unlikely to accelerate.

That said, one factor (the strength of the peso) that has been helping to keep a lid on inflation has faded somewhat in recent weeks. Since early May, the peso has weakened by around 5% against the greenback amid heightened market volatility asspeculation intensified about potential US tapering.

At this point, we do not think that peso weakness is going to significantly translate into inflationary pressure especially since peso weakness has not been outsized compared to the performance of other currencies in the region.

June inflation is projected to reach 2.5% YoY, down from 2.6% in the preceding month.

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia