Peso gets a lift from October’s inflation data

The Philippine peso appreciated against the US dollar for the third consecutive trading day on Tuesday, as the inflation rate October likely signaled a slowdown.

The local currency gained 19.5 centavos to close at P53.025:$1 from P53.220:$1 Monday.

“The local peso indeed strengthened today after the October inflation report from the PSA indicated some signs of a slowdown, despite the flat aggregate headline,” Guian Angelo Dumalagan, market economist at the Land Bank of the Philippines, said.

According to the Philippine Statistics Authority (PSA), inflation at 6.7 percent in October was unchanged from September. But it was the fastest since the 7.2 percent recorded in February 2009.

National Statistician Lisa Grace Bersales noted, however, a month-on-month slowdown of 0.3 percent in October, from 0.8 percent in September.

“There seems to be a slowing in the increase in prices. This is the slowest [month-on-month growth since August],” she said.

Peso is expected to continue trading on a stronger note in anticipation of positive third-quarter economic data.

“The peso is still expected to appreciate for the week on expectations of stronger GDP growth data from the previous quarter,” Dumalagan said.

The Philippine Statistics Authority (PSA) is scheduled to release the third-quarter economic performance data on Thursday, November 8.

Economists earlier said they expect the third quarter economic growth to exceed the 6.0 percent recorded in the second quarter. —VDS, GMA News