Philippines import growth surge 13.3%

But inflation may spike to as much as 3.8% due to nasty weather conditions.

According to OCBC, import growth rose to 13.3% yoy in June from 10.1% previously, driven by a slight rebound in electronics imports and also a jump in capital goods demand. Note that the Q2 GDP data is due later this week.

Meanwhile, BSP Governor Tetangco said that inflation is likely to come in near the bottom of the 3-5% target for the year even if it may spike to as much as 3.8% in August because of the floods. He added that the PHP may weaken amidst the floods.

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