In­fla­tion may ease in Jan­uary

Manila Bulletin - - Business -

In­fla­tion pres­sure could at­ten­u­ate in Jan­uary as Manila Elec­tric Com­pany (Mer­alco) an­nounced a 3.2% re­duc­tion in elec­tric­ity rates dur­ing the month. Mer­alco serves the Philip­pine cap­i­tal and sev­eral of its neigh­bor­ing prov­inces, an area that ac­counts for about half of gross do­mes­tic prod­uct. In­fla­tion has been ac­cel­er­at­ing in re­cent months and the cen­tral bank ex­pects its to sus­tain the mo­men­tum, with the av­er­age for this year likely set­tle around the mid­point of its 2.0%-4.0% tar­get range af­ter av­er­ag­ing 1.8% in 2016. Many economists are now pre­dict­ing the Bangko Sen­tral ng Pilip­inas will start tight­en­ing pol­icy this year af­ter keep­ing it ac­com­moda­tive in re­cent years. (WSJ)

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