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Philippines inflation eases, but political uncertainty clouds recovery

Inflation dropped to 6.4 percent in June from 7.2 percent in April, yet ING said the central bank lacks evidence to declare victory.

Reported · Written up by our desk · Emerging Markets

South China Morning Post reports that the Philippines’ economic recovery remains under pressure from a mix of domestic and international political headwinds, even after inflation eased in June.

According to the outlet, Dutch financial think tank ING linked the ongoing strain to Senate turmoil and a recent corruption scandal, saying political uncertainties have compounded the country’s economic pressures despite inflation cooling to 6.4 percent in June from a peak of 7.2 percent in April following the US-Israel war on Iran.

The piece adds that ING noted headline inflation eased for a second month as global oil prices corrected, which helped retail fuel prices. However, ING cautioned that the central bank does not yet have enough evidence to declare victory on inflation, pointing to its analysis in a report published July 13.

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