{"id":333157,"date":"2025-07-11T00:57:13","date_gmt":"2025-07-10T16:57:13","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=333157"},"modified":"2025-07-11T00:57:15","modified_gmt":"2025-07-10T16:57:15","slug":"commentary-inflation-is-up-but","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/commentary-inflation-is-up-but\/","title":{"rendered":"Commentary: Inflation is up but&#8230;"},"content":{"rendered":"\n<p><strong>Inflation slightly higher in June, but no cause for alarm<\/strong><\/p>\n\n\n\n<p>The Philippine Statistics Authority (PSA) reported that inflation in June ticked slightly higher to 1.4% from 1.3% the previous month. Despite a slight month-on-month (MoM) increase, the inflation print was better than the 1.5% expected by most analysts. <\/p>\n\n\n\n<p>The uptick was driven mostly by higher inflation on housing, water, electricity, gas, and other fuels (HWEGO), which rose by 3.2% year-on-year (YoY) vs 2.3% in May, and a slower decline of -1.6% YoY in the cost of transportation, from -2.4% the previous month. Higher inflation from these segments were tempered by the 0.1% YoY increase in food prices, which marked a significant slowdown from last month\u2019s 0.7% as rice and cornprices continue to drop.<\/p>\n\n\n\n<p><strong>No impediment to more rate cuts<\/strong><\/p>\n\n\n\n<p>The BSP expects inflation to heat up further in July, mainly due to transitory effects of oil price spikes following the escalation of tensions in the Middle East last month. However, the BSP remained confident that full inflation would come in at the lowest end of their forecast range, primarily due to the continued easing of rice prices. <\/p>\n\n\n\n<p>BSP Governor Eli Remolona even went so far as to say to reporters that the door remains open for up to two more rate cuts this year, as the BSP works to shore up economic activity amidst growing external headwinds. Despite the Governor\u2019s statement, and our own forecast of full-year inflation slowing to 1.8% and GDP growth just matching last year\u2019s 5.6%, our base case scenario assumes only one more rate cut in the 4th quarter.<\/p>\n\n\n\n<div style=\"height:26px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"font-size:16px\"><em><em>This report is prepared by PinoyInvestor\u2019s partner broker below. Find out more about <a href=\"https:\/\/www.pinoyinvestor.com\/smartinvestor\/our-partner-brokers\/\">our partner brokers<\/a> and sign up to avail their complete trading brokerage services.<\/em><\/em><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here\u2019s a commentary on an important issue or event affecting the stock market<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1124,11],"tags":[],"class_list":["post-333157","post","type-post","status-publish","format-standard","hentry","category-commentaries-special-reports","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\/333157","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=333157"}],"version-history":[{"count":1,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/333157\/revisions"}],"predecessor-version":[{"id":333159,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/333157\/revisions\/333159"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=333157"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=333157"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=333157"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}