Nomura: PH inflation seen falling faster on lower oil prices

MANILA, Philippines – The Philippines is poised to be one of Asia’s biggest beneficiaries from the tentative peace deal between the United States and Iran, with lower oil prices expected to accelerate the country’s inflation slowdown, according to Nomura Global Markets Research.

In a research note, Nomura estimated that every 10-percent decline in oil prices could reduce Philippine inflation by about 0.5 percentage point. This is the largest disinflationary impact in the region and on par with India.

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Nomura currently forecasts Philippine inflation to average 5.5 percent this year. In May, inflation had already eased to 6.8 percent from 7.2 percent in April, although it remains above the Bangko Sentral ng Pilipinas’ (BSP) 2-percent to 4-percent target range.FEATURED STORIES