Barclays Capital: PHL inflation to settle at 3.5% this year

Philippine inflation should ease to 3.5 percent this year from 4.7 percent last year, London-based Barclays Capital Ltd. said in a report Monday.

 

“We expect inflation to average 3.5 percent in 2012, above the BSP’s projection of 3.1 percent. BSP’s inflation target range is three percent to five percent,” the investment bank said in “Emerging Asia Data Review and Preview.”

 

The Bangko Sentral ng Pilipinas (BSP) expects inflation this year to settle between 3 percent and 5 percent.

 

Inflation for March would inch up to 2.8 percent from a 29-month low of 2.7 percent in February, the investment bank noted. “Inflation to increase slightly on rising food and energy prices, although clothing and housing prices are likely to ease,” Barclays said.

 

But the BSP sees inflation rising due to food and oil prices and a weaker peso against the US dollar.

 

“Inflation could be higher than February’s rate of 2.7 percent if the impact of higher international prices, the weak peso, and increases in the prices of certain food items were not fully offset by lower utility rates and lower prices of some vegetables,” BSP Gov. Amando Tetangco Jr. earlier said. —VS, GMA News