Inflation plateaued in the second quarter, giving the Bangko Sentral ng Pilipinas room to keep its accommodative stance to help the economy fully recover from the pandemic-induced recession, Standard Chartered Bank said.
The bank’s economist for Asia said inflation may ease in the second half after steadying at 4.5 percent in March to May.
He added, “Inflation has plateaued in the second quarter, after spiking sharply in the first quarter, as the imposition of nationwide lockdowns impacted activity, hurting demand. We expect inflation to ease in the second half as the low base from 2020 fades. This should provide BSP with space to maintain easy monetary policy, at least through the rest of 2021.”
Inflation averaged 4.4 percent from January to May, exceeding the BSP’s two to four percent target, on rising oil prices and higher food prices, due to supply shocks brought about by weather disturbances and African swine fever outbreak.