Philippine consumer price inflation likely to have decelerated in November

Philippine consumer price inflation data for the month of November is set to release tomorrow. According to a DBS Bank research report, the headline inflation is expected to have eased to 6.3 percent year-on-year from 6.7 percent in the past two straight months. This is mainly due to the decline of oil prices and weaker food prices.

As oil price is likely to decline further, until at least the end of first quarter 2019, inflation is expected to slow down further in December and, in 2019, barring another supply side surprise such as oil price.

“Furthermore, the impact of higher excise taxes due to the first phase of TRAIN will also dissipate after 1Q19. This year we maintain our forecast at 5.3 percent and in 2019 at 4.7 percent”, added DBS Bank.