Palace welcomes cutting of inflation forecast

Malacañang on Sunday welcomed the reported cutting by Singapore-based DBS Bank Ltd. of its inflation forecast for the Philippines for 2012 and 2013, saying it may result in lower prices of goods and services. Presidential spokesman Edwin Lacierda said this is “good news” for the Philippines, even as he noted world oil prices are starting to soften. “That’s good news for us.... Then considering world oil prices are softening, mababa ang ating inflation (our inflation is low), which is good for us,” he said on government-run dzRB radio. He also noted that while world oil prices had risen in past months, prices of basic goods in the Philippines did not soar drastically due to the efforts of Philippine economic managers. Earlier reports said DBS lowered its inflation forecast for the Philippines due to lower-than-expected consumer prices in the first four months of the year as well as softening oil prices. The report said DBS slashed its inflation forecast to 3.5 percent instead of four percent this year and 4.3 percent instead of 4.8 percent in 2013. National Statistics Office data showed inflation rose to three percent in April from 2.6 percent in March. — LBG, GMA News