Home Blog Page 12986

Peso flat after inflation data

The peso ended flat against the dollar on Tuesday, March 6, following the February inflation print released earlier in the day amid the market jitters following President Donald J. Trump’s protectionist policies.

The local currency ended Tuesday’s trading session at P52 against the greenback, trading flat from its finish Monday.

The peso opened the session stronger at P51.885-per-dollar, while its intraday high stood at P51.81. Its worst showing, meanwhile, was at P52.04 against the US currency.

Dollars traded rose to $808 million on Tuesday from the $565.5 million that changed hands in the previous session.

Traders interviewed said the peso moved sideways following the faster-than-expected inflation print in February.

“The peso moved sideways today as the market interpreted the 2006 and 2012-based Philippine inflation data [yesterday] as mixed readings relative to the BSP’s (Bangko Sentral ng Pilipinas) 4%-inflation target,” a trader said in an e-mail.

Meanwhile, UnionBank of the Philippines Chief Economist Ruben Carlo O. Asuncion said in a text message that Mr. Trump’s protectionist stance also factored into the foreign exchange.

Mr. Trump said he is not backing down in pushing for the 25% tariff on imported steel and the 10% tariff on imported aluminum.

“To protect our [c]ountry we must protect American [s]teel! #AMERICA FIRST,” Mr. Trump said in a tweet on Monday.

For Wednesday, March 7, traders said the peso will move between P51.80 and P52.20. — Karl Angelo N. Vidal

Asian stocks gain as trade worries ease; yields higher

Asian stocks rallied after a second session of gains in the U.S. signaled investor concerns about a potential trade war in wake of President Donald Trump’s proposed tariffs are waning. Treasuries ticked lower.

Japan’s Topix index closed up 1.3 percent after advancing as much as 2 percent, and benchmarks from Hong Kong to Seoul clawed back losses incurred since Trump’s protectionist broadside on Thursday. Ten-year Treasury yields hovered around 2.89 percent, though that offered scant support for the dollar, which was little changed. German bund yields rose and the euro steadied.

“People are realizing a large trade war does not have consensus support, and decent leads last night in the U.S. are driving global risk assets higher,” Joshua Crabb, head of equities at Old Mutual Global Investors in Hong Kong, said.

Trump’s announcement Thursday that he intends to implement tough tariffs on steel and aluminum imports has been followed by calls by House Speaker Paul Ryan to reconsider. White House economic adviser Gary Cohn is summoning executives from U.S. companies that depend on the metal imports to meet this week with Trump in a last-ditch effort to halt the order, people familiar with the matter say.

Elsewhere, the Australian dollar pared gains even as export data beat forecasts and the central bank gave an upbeat assessment of the economy, leaving interest rates unchanged and giving no indication an increase is coming soon. West Texas oil advanced as a halt at Libya’s biggest crude field sparked speculation that supply will tighten.

Here are some key events coming up this week:

The Chinese People’s Political Consultative Conference runs through March 15 and overlaps with the National People’s Congress meetings in Beijing, through March 20. Australia GDP data is due Wednesday. The ECB isn’t expected to change policy on Thursday, but the Governing Council may discuss a change to pave the way for the end of quantitative easing. BOJ monetary policy decision and briefing on Friday. U.S. monthly payrolls data come Friday.

These are the main moves in markets:

Stocks

The MSCI Asia Pacific Index rose 1.3 percent as of 4:09 p.m. Tokyo time. Topix index gained 1.3 percent. Hong Kong’s Hang Seng Index jumped 2.3 percent. Kospi index rose 1.5 percent. Australia’s S&P/ASX 200 Index climbed 1.1 percent. Futures on the S&P 500 Index rose 0.1 percent.

Currencies

The Bloomberg Dollar Spot Index rose less than 0.05 percent. The Japanese yen fell 0.1 percent to 106.27 per dollar. The euro rose less than 0.05 percent to $1.234.

Bonds

The yield on 10-year Treasuries rose less than one basis point to 2.88 percent. Japan’s 10-year yield rose one basis point to 0.056 percent. Australia’s 10-year yield climbed eight basis points to 2.825 percent.
Commodities

West Texas Intermediate crude rose 0.2 percent to $62.71 a barrel. Gold rose 0.1 percent to $1,322.04 an ounce. LME copper increased 0.6 percent to $6,954.00 per metric ton. — Bloomberg

Philippine shares slump for fifth day straight

Stock prices extended their decline on Tuesday, March 6, following reports on February inflation accelerating to its fastest pace in three years.

The bellwether Philippine Stock Exchange index (PSEi) gave up 0.31% or 25.95 points to 8,360.22 on Tuesday, marking its fifth consecutive day of losses. The broader all-shares index also closed lower by 0.2% or 10.17 points to 5,033.72.

“Philippine markets closed lower as the lack of any positive developments led investors to sell down the market a fifth consecutive trading day. Investors were also surprised to see that base on the 2006 base, inflation for February came it at 4.5%,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile phone message.

The Philippine Statistics Authority reported that inflation for February stood at 4.5%, piercing the 2-4% target set by the Bangko Sentral ng Pilipinas, but within the BSP’s Department of Economic Research’s revised target range of 4-4.8%. The figure also breached the median 4.2% forecast from BusinessWorld’s poll of 14 economists.

This is the fastest inflation since August 2014’s 4.9%.

“This raises the possibility of a rate hike in the upcoming Monetary Policy meeting this coming March 22,” Papa Securities Corp. Deputy Head of Research Arabelle C. Maghirang said in an email.

Among the day’s top gainers was D&L Industries, Inc., up 2.39% to P12 each after reporting a 10.6% profit growth to P2.9 billion. Puregold Price Club, Inc. gained 2.21% to P53.15 each; Bloomberry Resorts Corp was up 1.12% to P14.46; while JG Summit Holdings, Inc added 1.55% to P65.70. — Arra B. Francia

Trump faces pushback on tariffs but says he will not back down

WASHINGTON — US President Donald Trump faced growing pressure on Monday from political and diplomatic allies as well as US companies urging him to pull back from proposed steel and aluminum tariffs, although he said he would stick to his guns.

Inside the White House, there still appeared to be confusion about the timing and extent of the planned tariffs, which would hit allies like Canada and Mexico hard.

Efforts by Mr. Trump and US trade negotiators to link the North American Free Trade Agreement (NAFTA) trade pact talks to the duties received short shrift from Ottawa and Mexico City.

Leading Republicans turned up the pressure on Mr. Trump, with House of Representatives Speaker Paul Ryan leading the charge. Mr. Ryan’s home state of Wisconsin would be hit by proposed European counter-measures on Harley-Davidson, Inc. motorbikes.

Representative Kevin Brady, another top House Republican, called on Mr. Trump not to hit America’s closest allies.

Business leaders are pressing for a meeting with Mr. Trump to brief him on the negative repercussions of the tariffs on companies that use steel and aluminum, a source familiar with the matter said.

A meeting had not yet been set up, the source said. The White House had no comment.

The planned tariffs have roiled world stock markets as investors worried about the prospect of an escalating trade war that would derail global economic growth. Stocks across the globe rose on Monday, however, after four days in decline as investors saw the tariff threats as a US negotiating tactic and not a done deal and as pressure grew on Mr. Trump to back off.

“We’re not backing down,” Mr. Trump said during a White House meeting with Israeli Prime Minister Benjamin Netanyahu. “I don’t think you’re going to have a trade war,” he added, without elaborating.

Canadian Prime Minister Justin Trudeau called Mr. Trump on Monday to tell him the tariffs would be an impediment to talks on updating NAFTA, a Canadian government official said.

Canada is the single largest supplier of steel and aluminum to the US. In the call, Mr. Trudeau “forcefully defended” Canadian workers and industries, said the official, describing the conversation as constructive.

Earlier comments from Mr. Trump had stoked talk of a global trade war as he described them as easy to win and issued a threat to German car makers. One of those, BMW, runs a plant in the US that is the largest single autos exporter in the country and has created thousands of jobs.

Most responses to Mr. Trump’s proposed tariffs have been targeted. The European Union said it would hit Harleys, bourbon and jeans, iconic American products. It did not threaten to ramp up the issue.

China has been largely mum, urging caution, and both Canada and Mexico have stressed the targeted nature of any response.

Mr. Trump was expected to finalize the planned tariffs later in the week, although some observers familiar with the process said it could occur next week. The initial announcement by Mr. Trump last week came as a surprise.

The US, Mexico and Canada have been holding talks over changes to the NAFTA, a pact that Mr. Trump has threatened to abandon.

Six months of tense talks have produced little in the way of progress and a move by Washington to link the steel and aluminum tariffs to progress on NAFTA was rebuffed by Canada and Mexico.

US Trade Representative Robert Lighthizer also attempted to drive a wedge between Canada and Mexico when he suggested the US would be willing to hold bilateral, rather than trilateral talks. The two countries again stood firm.

In Washington, aides scrambled to meet Mr. Trump’s demand for the paperwork to be completed for a formal announcement. The exact timing was unclear as the tariff documentation had to be drafted and go through a variety of reviews, a process that takes days, an administration official said.

There was always a chance that Mr. Trump “could amend his initial announcement” to take account of the concerns expressed about it, said a source familiar with the internal debate at the White House.

Mr. Trump has frequently talked tough on trade, although his actions have not always matched his words. On his first day in office in January 2017, he withdrew from the 14-nation Trans Pacific Partnership agreement, a deal that was dead on arrival in the US Congress in any case.

He has frequently tweeted and said that he would pull out of NAFTA, which he has called a jobs killer. But a year after taking office, the 1994 deal remains intact.

Mr. Trump has approved a series of small-scale trade actions, of which the steel and aluminum duties would be a part. Taken together with actions on washing machines and solar panels, the proposed move accounts for just 4.1% of US imports. In terms of global trade, they are just 0.60%, investment bank Morgan Stanley said in a report.

The head of the World Trade Organization warned of a real risk of triggering an escalation of global trade barriers and a deep recession, even as financial markets and many economists started to discount the risk of a global crisis.

“We must make every effort to avoid the fall of the first dominoes. There is still time,” WTO Director General Roberto Azevedo told the heads of WTO delegations at a closed-door meeting in Geneva. — Reuters

Former Russian spy ill in Britain after exposure to unidentified substance

LONDON — Former Russian spy Sergei Skripal, who was convicted by Russia of betraying agents to British intelligence, was critically ill on Monday after exposure to an unidentified substance in Britain, two sources close to the investigation told Reuters.

British police said two people, a 66-year-old man and a 33-year-old woman, had been found unconscious on a bench in a shopping center on Sunday in the southern English city of Salisbury after exposure to the unknown substance. Both are critically ill in intensive care.

Mr. Skripal, once a colonel in Russia’s GRU military intelligence service, was convicted in Russia of treason in 2006 but exchanged as part of a Cold War-style spy swap in 2010 on the tarmac of Vienna airport. Mr. Skripal is 66 years old.

British police did not release the names of those who were being treated but two sources close to the investigation told Reuters that the critically ill man was Mr. Skripal. It was unclear what the substance was, they said.

“This has not been declared as a counterterrorism incident…,” Wiltshire police’s Temporary Assistant Chief Constable Craig Holden told reporters. “However, I must emphasize that we retain an open mind, and that we continue to review this position.”

Relations between Britain and Russia have been strained since the murder of ex-KGB agent Alexander Litvinenko with radioactive polonium-210 in London in 2006, a killing which a British inquiry said was probably approved by President Vladimir Putin.

The Kremlin has repeatedly denied involvement in the killing.

Mr. Litvinenko, 43, an outspoken critic of Mr. Putin who fled Russia for Britain six years to the day before he was poisoned, died after drinking green tea laced with the rare and very potent radioactive isotope at London’s Millennium Hotel. — Reuters

Kim Jong Un, Seoul envoys meet on possible inter-Korean summit

SEOUL — North Korean leader Kim Jong Un discussed a possible summit with envoys from the South’s President Moon Jae-in, both sides said Tuesday, in the latest step of an Olympics-driven rapprochement on the divided peninsula.

The delegation from Seoul is the most senior to travel North for more than a decade, and comes as Moon tries to broker talks between nuclear-armed Pyongyang and Washington after months of high tensions.

The North’s official news agency KCNA said Kim “warmly welcomed” the South Korean officials, who handed over a letter from Mr. Moon.

“Hearing the intention of President Moon Jae In for a summit from the special envoy of the south side, he exchanged views and made a satisfactory agreement,” KCNA added.

But Seoul said no agreement had yet been reached on a meeting between Messrs. Kim and Moon, which would be the first such summit since 2007.

“It’s not an agreement, it’s discussions,” an official from the South’s presidential Blue House told AFP, adding that the two sides had “somewhat shared the view” on other points.

Mr. Kim’s talks with the South Koreans lasted more than four hours, and included dinner at the North’s ruling Workers Party headquarters in Pyongyang, according to the Blue House.

Details will be made public after the delegation returns late Tuesday, it said.

The North’s Rodong Sinmun newspaper, the mouthpiece of the ruling Workers Party, devoted its entire front page Tuesday to the visit under the headline “Comrade Kim Jong Un receives special envoys from the south’s president.”

The main picture showed Mr. Kim with the five South Korean officials in the delegation, and it carried seven other front-page images of the talks — at which Mr. Kim’s sister Kim Yo Jong sat to his left — with more coverage inside.

The Seoul delegation’s visit comes after the North’s leader sent his sister to the Winter Games in the South and invited Moon to a summit in Pyongyang.

Kim Yo Jong’s trip was the first visit to the South by a member of the North’s ruling dynasty since the end of the 1950-53 Korean War, and her appearance at the Games’ opening ceremony — where athletes from the two Koreas marched together — made global headlines.

At the time Mr. Moon did not immediately accept the invitation to Pyongyang, saying that the “right conditions” were needed.

Mr. Moon has sought to use the PyeongChang Games to open dialogue between Washington and Pyongyang in hopes of easing a nuclear standoff that has heightened fears over global security.

But while Pyongyang has long said it is willing to talk to the US without preconditions, it is also adamant it will not give up the “treasured sword” of its nuclear weapons, which it says it needs to defend itself from a possible invasion by the United States.

Washington insists that the North must take concrete steps towards denuclearization before negotiations can take place.

It was not clear whether the two Koreas discussed denuclearization on Monday.

Asked if the topic had come up, a senior Blue House official was quoted by Yonhap as saying: “I assume so.”

The Winter Olympics were held by “fellow countrymen of the same blood” and provided “a good atmosphere of reconciliation, unity and dialogue between the north and the south,” KCNA quoted Kim Jong Un as telling the South Korean envoys.

Before leaving for Pyongyang, the South’s national security advisor Chung Eui-yong said: “We plan to hold in-depth discussions for ways to continue not only inter-Korean talks but dialogue between North Korea and the international community including the United States.”

It is a challenging task — in defiance of United Nations sanctions, the isolated and impoverished North last year staged its most powerful nuclear test and test-fired several missiles, some of them capable of reaching the US mainland.

US President Donald Trump dubbed Kim “Little Rocket Man” and boasted about the size of his nuclear button, while the North Korean leader called Mr. Trump a “mentally deranged US dotard.”

They traded threats of war and sent tensions soaring before a thaw in the run-up to the Winter Olympics, which were attended by athletes, cheerleaders and officials from the North, and the two Koreas fielded a unified women’s ice hockey team. — AFP

Government makes partial award of T-bonds

The government made a partial award of fresh five-year Treasury bonds (T-bonds) it offered on Tuesday, March 6, as investors sought higher returns.

At its auction on Tuesday, the Bureau of the Treasury raised P12.039 billion out of the planned P20-billion borrowing from the fresh bonds maturing on March 3, 2023.

Total tenders reached P25.884 billion, more than the amount the government wanted to raise.

The five-year bonds fetched a coupon rate of 5.5% with an average rate of 5.452%, 87.5 basis points higher than the 4.53% average rate fetched during the recent retail Treasury bonds offering in November.

Had the government made a full award of the bonds, the coupon rate would have climbed to 5.75%.

At the secondary market on Tuesday before the auction, the 20-year papers were quoted at 5.309%. — Karl Angelo N. Vidal

As Duterte shifts toward China, Vietnam bolsters US ties

This week’s visit by a U.S. aircraft carrier to Vietnam — the first since the war — highlights a growing relationship between the former enemies that has blossomed even as the Philippines, a long-time American ally, gets closer to China.

The USS Carl Vinson arrived off the central city of Danang on Monday for a five-day visit along with two escort ships carrying some 6,000 sailors and aviators. The crew will meet with their Vietnamese counterparts, visit victims of Agent Orange, and participate in a soccer match and a concert.

The visit comes as China makes progress toward a deal with the Philippines to jointly explore for oil and gas in disputed parts of the South China Sea, a move that would leave Vietnam more isolated in pushing back. Hanoi’s leaders have rejected China’s claims as a basis for joint development, and have stepped up ties with the U.S., Australia and India to hedge against Beijing’s rise.

Tensions have risen in recent years as China has built up its naval presence, most visibly with a plan to put half-a-dozen aircraft carriers in the world’s oceans. In 2014, China’s move to send an exploration oil rig into waters contested with Vietnam triggered deadly anti-China riots and clashes at sea between coast guard boats.

“The government didn’t back down in 2014 and that played very well,” said Collin Koh Swee Lean, a research fellow at the S. Rajaratnam School of International Studies in Singapore. “I don’t see Vietnam changing its approach. The more the Philippines is seen bending toward China, the more Vietnam is concerned not to be seen doing the same thing.”

Philippine President Rodrigo Duterte has shifted toward China since taking power in 2016, attracting billions of dollars in investment as he downplayed his nation’s legal victory over Beijing in the territorial disputes. On Monday, Duterte’s spokesman Harry Roque said the Philippines and China need a treaty before any joint exploration can take place.

In Vietnam, public opinion is decidedly in favor of the Americans. A 2017 Pew opinion poll found 84 percent of Vietnamese view the U.S. favorably, compared with just 10 percent for China.

“The visit marks an enormously significant milestone in our bilateral relations and demonstrates U.S. support for a strong, prosperous and independent Vietnam,” Daniel Kritenbrink, the U.S. ambassador to Vietnam, told reporters in Danang. The U.S. and Vietnam have “gone from former enemies to close partners,” he said.

‘Red Line’

President Donald Trump’s visit to Vietnam in November laid the groundwork for the aircraft carrier visit, Vietnamese Foreign Ministry spokeswoman Le Thi Thu Hang said in a statement. It will contribute to maintaining peace, security and stability in the region, she said.

While the U.S. takes no formal position on the disputes between China and the other claimants in the South China Sea, it regularly makes so-called freedom of navigation operations to demonstrate the right to fly and sail through what it considers to be international waters and airspace.

Defense ties between the U.S. and Vietnam expanded under President Ba­rack Obama. His administration lifted a decades-long embargo on lethal arms sales to Vietnam in 2016, just over two decades after relations were normalized.

Crowds Watching

“The will of the Vietnamese people on this issue is very united, strong and clear,” said Le Dang Doanh, an economist and former Vietnam government adviser. “Vietnam has demonstrated goodwill toward China, but there are limits. If China crosses Vietnam’s red line, Vietnam must defend its position. The people in Vietnam strongly want the defense of its territory.”

The Nimitz-class carrier, bristling with about 60 fighter jets, on Monday docked about half a mile off Danang, attracting thousands of Vietnamese who lined cliffs and bridges to get a glimpse.

“It’s great for us to have such a ship here,” Nguyen Van Hieu, a 57-year-old Danang taxi driver who served in the Vietnam People’s Army during border clashes with China in the 1980s, said of the aircraft carrier. “It’s evidence that the U.S. and Vietnam are getting much closer and that can help us balance our relationship with China.” — Bloomberg

Asia’s biggest currency gain in 20 years may be about to end

Asian currencies may be on the verge of a correction after completing the best year in at least two decades. The warning sign? Indonesia’s rupiah slumped to a two-year low last week.

The rupiah is seen as a bellwether of sorts for Asia given the high foreign ownership of Indonesia’s bonds and its largely open economy. The currency is typically among the first in the region to be sold when sentiment sours, and this often heralds a broader decline among its peers.

The rupiah has tumbled 1.5 percent in the past month, the worst performer in Asia and third-worst among 24 emerging-market currencies worldwide. It fell as overseas investors sold the nation’s stocks and bonds and equity volatility jumped due to expectations of higher U.S. interest rates.

“Indonesia’s rupiah is arguably the high-beta version of Asian ex-Japan risks,” said Vishnu Varathan, head of economics and strategy at Mizuho Bank Ltd. in Singapore. “The declines are certainly not peculiar to IDR. Nor are they conclusively behind us. The upshot is that with uncertainty around global trade risks, global liquidity is set to start declining, albeit gently, later this year. AXJ air-pockets are anticipated.”

The Bloomberg JPMorgan Asia Dollar Index, which measures 10 of the region’s currencies against the greenback, climbed 6.7 percent last year, the biggest annual advance in data that started in 1994. If the rupiah proves to be the canary in the coal mine, the gauge may give back a lot of those gains this year.

Dollar Revival

Regional currencies may suffer due to a resurgent dollar. The greenback has rallied since new Federal Reserve Chairman Jerome Powell delivered upbeat testimony to lawmakers last week. His acknowledgment of stronger U.S. economic growth fueled speculation the central bank may raise interest rates as many as four times this year.

Global funds pulled $1.02 billion from Indonesian bonds last week, the biggest five-day outflow since November 2016, according to central bank data. They sold $186 million of the nation’s equities in the same period.

There are signs other Asian currencies are also starting to weaken, with the Philippine peso dropping to the weakest since July 2006 last month.

Declines in the rupiah have often foreshadowed losses among Asian peers. In January 2016, the Asia Dollar Index slumped to a seven-year low, months after the rupiah sank to the weakest since 1998. — Bloomberg

Go Hotels to open third branch in Mindanao this year

DAVAO CITY — Robinsons Land Corp. (RLC) will open its 17th Go Hotels branch within the first half of the year, located in Iligan City in the Northern Mindanao Region.

“We are gearing towards opening Go Hotels in Iligan City and it will be our third branch in Mindanao. We are hoping to open it by first half of this year, hopefully July,” Jacquelyn T. Lim, assistant marketing manager of RLC’s Robinsons Hotels and Resorts, said in an interview in Davao City on Monday.

Ms. Lim said the Iligan branch, located beside the existing Robinsons shopping mall, will have 100 rooms and several function rooms.

“There is a need to develop a hotel there because of the lack of accommodations, especially good quality accommodations… I met the city tourism officer of Iligan and that is what they are looking for,” she said.– Maya M. Padillo

Factory output growth fastest in more than four years

FACTORY production expanded to its fastest pace in more than four years in January, preliminary data from the Philippine Statistics Authority showed.

Manufacturing output — as measured by the Volume of Production Index — rose 21.9% year on year, reversing the 9.2% fall in December and was faster compared to 14.9% growth seen in January last year. The January 2018 turnout was also the fastest recorded since December 2013’s 22.8% increase.

Sectors which saw gains were: printing (114.5%), leather products (39.2%) petroleum products (37%), machinery except electrical (36.8%), basic metals (35.5%), chemical products (32.3%), fabricated metal products (32.2%), beverages (31.8%), non-metallic mineral products (17.5%), food manufacturing (15.2%), paper and paper products (14.7%), electrical machinery (13.9%) and miscellaneous manufactures (12.3%).

Meanwhile, declines were observed on: transport equipment (-13.9%), tobacco products (-27.7%), rubber and plastic products (-11.6%), wood and wood products (-52.9%), footwear and wearing apparel (-7.1%), textiles (-1%) and furniture and fixtures (-1.2%).

Average capacity utilization — the extent by which industry resources are being used in the production of goods — stood at 84.1%. — Jochebed B. Gonzales

Inflation grows at fastest pace in over three years

CONSUMER prices rose at its fastest rate in more than three years in February, on the back of increased prices in food and non-alcoholic beverages, and the double-digit increase in “sin” products, the Philippine Statistics Authority (PSA) said this morning.

Overall inflation rose in February by 4.5% year-on-year based on 2006 prices, faster than the previous month’s 4% increase, PSA said.

The February print was also the fastest since September 2014’s 4.4% and overshoot the Bangko Sentral ng Pilipinas (BSP)’s 2-4% target for the year, albeit within the 4.-4.8% estimate range given by the BSP’s Department of Economic Research.

By using the new 2012-rebased index, inflation stood at 3.9% in February, also fastest in more than three years since the same September 2014’s 3.9% rate, PSA said.

“The elevated February inflation figure is in line with our updated forecast for a temporarily higher inflation than target range in 2018 due to transitory factors,” BSP Governor Nestor A. Espenilla, Jr. said in a text message to reporters.

“The operative word is temporary. How temporary is temporary is what needs careful analysis.”

“Also, let’s not forget that monetary policy operates with a long lag. Whatever monetary policy action we do now, will more likely be felt in 2019 and beyond rather than 2018. That’s why we don’t necessarily react to Feb 2018 but must look much further ahead and rely on forecasts.”

The acceleration was led by the faster annual gain recorded in the heavily weighted food and non-alcoholic beverages index at 4.9% (based on 2006 prices), likewise, food alone index rose by 4.9%,the report said.

Double-digit increase in alcoholic beverages and tobacco index at 17.1% also contributed to the increase in overall prices last February.

Excluding the volatile food and energy prices, the core index for consumer prices registered an increase of 4.4%.

For National Capital Region, overall price increases was recorded at 5.6% for the month of February. — Ranier Olson R. Reusora with a report from Melissa Luz T. Lopez

ADVERTISEMENT
ADVERTISEMENT