PH inflation likely breached 8% in May, foreign banks say

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MANILA, Philippines – Persistent price pressures tied to the conflict in the Middle East may have pushed domestic inflation above 8 percent in May, three global banks said, reinforcing expectations that the central bank could raise interest rates again soon.

In a note to clients, analysts at MUFG Global Markets Research said consumer prices likely rose 8 percent from a year earlier last month, from 7.2 percent in April.

READ: BSP sees May inflation at 7.1%-7.9% on food, peso pressures

The inflation report due on June 5, MUFG said, could prove pivotal in determining whether the Bangko Sentral ng Pilipinas (BSP) delivers a large rate increase before or at its scheduled policy meeting on June 18.