{"id":321435,"date":"2023-02-08T19:37:50","date_gmt":"2023-02-08T11:37:50","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=321435"},"modified":"2023-02-16T11:51:56","modified_gmt":"2023-02-16T03:51:56","slug":"special-report-inflation-jan-2023","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/special-report-inflation-jan-2023\/","title":{"rendered":"Inflation clocks in at a surprise 8.7%, highest since November 2008"},"content":{"rendered":"\n

The Philippines’ inflation rate surged to a fresh 14-year high in January 2023. It clocked in at 8.7%, the highest level since November 2008 and way above the consensus estimate of 7.6%. <\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

In comparison, January 2022 inflation was 3.0% while December 2022 was 8.1%. A few days earlier, Finance Secretary Benjamin Diokno said that the country’s inflation rate may have already peaked in December. The latest figure proves otherwise and is much higher than the BSP’s estimate of between 7.5% to 8.3%. Core inflation, which excludes selected food and energy items, rose to 7.4% from 6.9% in December 2022. <\/p>\n\n\n\n

The January surprise was driven largely by the sharp 1.7% rise in month-on-month inflation, driven by the rising cost of housing, water, electricity, gas and other fuels. Food inflation also climbed to 11.2% from 10.6% in December 2022. The higher food inflation was felt mostly in vegetables, tubers, plantains, cooking bananas and pulses.<\/p>\n\n\n\n

<\/div>\n\n\n\n

Analysis and Recommendation<\/h2>\n\n\n\n

The latest inflation figures show that peak inflation is not yet behind us. We expect full year inflation to hit 5%, lower than last year\u2019s 5.8% but still above BSP\u2019s target range of 2% to 4%. <\/p>\n\n\n\n

Coupled with the recent surprisingly strong US jobs data, local inflationary pressures are expected to put renewed pressure on domestic interest rates. The Bangko Sentral ng Pilipinas (BSP) said that they will be focusing on the local inflation numbers before acting on the benchmark overnight rates. <\/p>\n\n\n\n

The BSP’s next monetary board meeting will be on February 16. A contractionary policy will dampen economic growth as the cost of doing business goes up. Corporate profits, which have been resilient, can also be affected as consumers’ purchasing power weakens.<\/p>\n\n\n\n

<\/div>\n\n\n\n

This report is prepared by PinoyInvestor\u2019s partner broker below. Find out more about our partner brokers<\/a> and sign up to avail their complete trading brokerage services.<\/em><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Here\u2019s a commentary on an important issue or event affecting the stock market<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-321435","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\/321435","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\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=321435"}],"version-history":[{"count":2,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/321435\/revisions"}],"predecessor-version":[{"id":321640,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/321435\/revisions\/321640"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=321435"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=321435"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=321435"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}