{"id":151588,"date":"2018-02-07T03:10:02","date_gmt":"2018-02-07T08:10:02","guid":{"rendered":"https:\/\/canadianinquirer.net\/v1\/?p=151588"},"modified":"2018-02-07T03:10:02","modified_gmt":"2018-02-07T08:10:02","slug":"bsp-expects-18-inflation-to-hover-around-4","status":"publish","type":"post","link":"https:\/\/canadianinquirer.net\/v1\/2018\/02\/07\/bsp-expects-18-inflation-to-hover-around-4\/","title":{"rendered":"BSP expects \u201918 inflation to hover around 4%"},"content":{"rendered":"
\"\u201cThe<\/a>
\u201cThe higher inflation in 2018, due largely to the immediate impact of the TRAIN Law, is seen to be temporary,\u201d he said. (Photo by Jun Acullador\/Flickr)<\/a><\/figcaption><\/figure>\n

MANILA\u2014<\/strong>\u00a0The Bangko Sentral ng Pilipinas (BSP) considers as temporary the elevated domestic inflation rate this 2018, which is expected to \u201cbe around the high-end\u201d of the government\u2019s 2-4 percent target range for 2017-2019.<\/p>\n

In a statement posted on the central bank\u2019s Facebook page Tuesday night, BSP Governor Nestor A. Espenilla Jr. said monetary officials expected inflation \u201cto be around the high-end of the National Government\u2019s target rate of 3.0 percent \u00b1 1.0 percentage points in 2018 before settling above the midpoint of the target range in 2019.\u201d<\/p>\n

\u201cThe higher inflation in 2018, due largely to the immediate impact of the TRAIN Law, is seen to be temporary,\u201d he said.<\/p>\n

The Philippine Statistics Authority (PSA) on Tuesday reported that rate of price increases registered a faster rate of four percent in the first month this year, up from the 3.3 percent in December 2017 and the 2.7 percent in January 2017.<\/p>\n

Core inflation, which excludes volatile food and oil, registered at 3.9 percent, faster than the three percent last December and 2.5 percent in January last year.<\/p>\n

PSA traced this development primarily to faster inflation rate of the heavily-weighted food and non-alcoholic beverages to 4.5 percent from the previous month\u2019s 3.5 percent and the double-digit rate of the alcoholic beverages and tobacco index to 12.3 percent from 6.4 percent last December.<\/p>\n

The first package of the Tax Reform for Acceleration and Inclusion (TRAIN ), which took effect January 1 this year, gave workers\u2019 first PHP250,000 annual income a tax-free rate but hiked excise taxes on fuel and sugar-sweetened beverages.<\/p>\n

Some analysts also attribute the faster inflation rate last January to the impact of the tax reform.<\/p>\n

Amid the expected high inflation rate this year, Espenilla said, \u201cPotential expansion of the economy\u2019s productive capacity due to infrastructure spending would temper prices pressures in the long run.\u201d<\/p>\n

He cited that the planned one-year subsidies for the lower 50 percent of the society and the transport sector, which were targeted to help the poor cope with the increase of some commodity prices as a result of the tax reform, \u201ccould help mitigate the reduction in purchasing power of low-income households, and may help prevent further price increases.\u201d<\/p>\n

\u201cNevertheless, the BSP during its 8 February 2018 monetary policy meeting will evaluate carefully potential elevated risks to the inflation outlook, such as those coming from second-round effects of TRAIN and higher energy prices, to ensure that inflation expectations are well-anchored and remain consistent with the inflation target,\u201d he added.<\/p>\n","protected":false},"excerpt":{"rendered":"

MANILA\u2014\u00a0The Bangko Sentral ng Pilipinas (BSP) considers as temporary the elevated domestic inflation rate this 2018, which is expected to …<\/p>\n","protected":false},"author":33,"featured_media":135049,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[20472,46075,46076],"class_list":["post-151588","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-bangko-sentral-ng-pilipinas-bsp","tag-bsp-expects-18-inflation-to-hover-around-4","tag-elevated-domestic-inflation-rate","mauthors-joann-villanueva","mauthors-philippine-news-agency"],"_links":{"self":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/151588","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/comments?post=151588"}],"version-history":[{"count":0,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/151588\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media\/135049"}],"wp:attachment":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media?parent=151588"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/categories?post=151588"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/tags?post=151588"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}