Moody’s Analytics, the financial intelligence and analysis arm of global credit watcher Moody’s Investor Service, forecasts inflation at only 5.3 percent in June, sharply lower than in May when this averaged 6.1 percent.
This view is consistent with that taken earlier by the Bangko Sentral ng Pilipinas (BSP) when it bared forecast inflation ranging from a low 5.3 percent to no more than 6.1 percent for the period.
The Moody’s unit said commodities prices are fading as global supply conditions find a better footing although weak global demand still weigh on shipments and production.
The BSP has noted the low price of meat and vegetables and the reduction in the price of cooking gas even as the price of key food items as rice, vegetable and fish, the price of fuel oil at the pumps and the weak local currency the peso remains elevated.
Analysts maintain above-target headline inflation this year on the basis of supply-side pressures not having dissipated. The official target inflation is 3 percent plus or minus 1 percent this year.
