Economists Mixed on Inflation Data

Economists expressed mixed views on inflation data for May, with some saying it likely eased further while others expected the price index to reverse course.

- By KEISHA TA-ASAN

A poll of leading analysts showed that some expect inflation to come in between 1.2 and 1.5 percent year-on-year in May, a softer print than April's 1.4 percent, citing the continued decline in energy costs and stable peso-dollar exchange rate, even as certain food items posted slight upticks.

Other economists, however, pegged May inflation at a slightly higher rate, although still well below the two to four percent target range of the Bangko Sentral ng Pilipinas (BSP).

HSBC economist for ASEAN Aris Dacanay projected inflation at 1.2 percent, pointing to the combined effect of a strong peso and moderating global oil prices.

"Though some volatility was seen in diesel prices, fuel prices in general are much lower today than on the last day of April," he said. "Food prices, on the other hand, were mixed. Leafy vegetables like cabbages were more expensive, but rice prices continued their decline."