Inflation

of food and electricity.

“Lower base for food, even though oil has risen, is lower than last year. Electricity costs have slightly improved as well,” said Regina Capital head of sales Luis Limlingan.

Limlingan said lower borrowing cost as a result of Bangko Sentral ng Pilipinas’ recent rate increased demand for loans,” said Limlingan. percent as rice prices remain “muted” while consecutive month.

- tion should remain muted through the rest of 2019 due to base effects,” ANZ Research said in a report.

Analysts from Rizal Commercial Banking Corporation (RCBC), Philstocks, and Security Bank Corporation all offered the lowest projection of 1.0 percent.

RCBC Economics and Industry Research Division head Michael Ricafort said major

denominator effects a year ago, decline in palay prices, low interest rates, and slightly stronger peso exchange rate versus the US dollar.

“However, these catalysts were offset by some uptick in local fuel pump prices, but Saudi Arabia already reiterated the full restoration of its oil production within September 2019, thereby limiting the upside of global oil prices and also limiting the adverse effects in terms of some uptick in local fuel pump prices and

Ricafort said the adverse effects of the African Swine Fever on both hog production

negligible.

Security Bank Corporation chief economist

likely continue to settle until November 2019.

“Our estimate takes into account the latest pump price increase caused by tensions in the Middle East that caused global oil prices to rise. However, we do not see a repeat of the inflationary push similar to last year as production levels are slowly normalizing in Saudi Arabia. We also accounted for the fallout from the African swine fever that pushed prices for pork substitute goods to go up very slightly,” said Roces.

“Due to favorable base effects and anticipated consumption factors in the coming months,

at below 2 percent

until November 2019. With this, we have also be at 2.5 percent, and remains consistent with

outlook over the policy horizon for the rest of year,” he added.

Japhet Louis Tantiangco, research associate at Philstocks also attributed the slowdown in

“Downside factors include the high base effect, lag impact of the slow money supply growth in the early part of the year, lower electricity rates, and stable prices,” said Tantiangco.

Upside factors on the other hand are the increase on oil prices and weak peso.