The Development Budget Coordination Committee (DBCC) last week said inflation was now expected to be within the range of 3.7 percent to 4.7 percent, which breaches the upper end of the target band of 2 percent to 4 percent.<\/p>\n\n\n\n
The country’s inflation is projected to reach as high as 4.7% above previous forecasts of 4.6% due to supply-driven inflationary factors which are causing food and energy prices to rise. Concurrent to this, BSP has signaled 25 bps (0.25%) rate hikes in each of the next two meetings as discussed above. However, ING Bank economist Nicholas Mapa notes that there is still upside risk of a 50 bps (0.50%) hike on June if May inflation exceeds 6%. The potential for higher-than- expected rate hikes and May inflation, may lead to a downward bias in the PSEi in the weeks leading up to the June meeting.<\/p>\n\n\n\n
On another note, consumer companies such as PGOLD, MONDE, and URC<\/strong> could see higher demand however since they primarily sell\/produce consumer-staple products which are often considered as cheaper alternatives and essential (ie. instant noodles, snacks), which usually see a boost during inflationary periods. This should allow revenues from these companies to be more resilient to inflationary pressure. We note though that rising costs of fuel and other inputs may pose risks to their margins.<\/p>\n","protected":false},"excerpt":{"rendered":" Here’s a commentary on an important issue or event affecting the stock market <\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-314546","post","type-post","status-publish","format-standard","hentry","category-special-reports","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/314546","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=314546"}],"version-history":[{"count":3,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/314546\/revisions"}],"predecessor-version":[{"id":320501,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/314546\/revisions\/320501"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=314546"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=314546"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=314546"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}