Inflation in the Philippines is projected to ease next year, falling within the Bangko Sentral ng Pilipinas (BSP) target range of 2 to 4 percent, according to global investment bank Goldman Sachs.
The forecast is based on expectations that energy and food prices, which soared last year, will remain relatively stable. Goldman Sachs anticipates a widespread decline in inflation across most emerging markets, with a projected disinflation of around 2 percentage points in 2024.
Easing supply chain disruptions are also expected to contribute to moderating price pressures on goods. Additionally, Goldman Sachs believes that labor markets will remain tight in many economies, as wage increases implemented during the pandemic’s peak inflation period are likely to persist.
The consensus forecast among analysts for inflation in the Philippines in 2024 is 3.7 percent, while Goldman Sachs projects a slightly higher rate of 4.2 percent. Although above the target band, this projection is still more optimistic than the BSP’s own forecast of 4.4 percent.
Source: PhilNews24 | November 22, 2023
