(BusinessMirror) EL Niño is now considered one of the major upside risks to inflation in the next few months, according to the Bangko Sentral ng Pilipinas (BSP) and the National Economic and Development Authority (Neda).
On Wednesday, the Philippine Statistics Authority (PSA) reported that inflation slowed to 5.4 percent in June from the 6.1 percent posted in May 2023 and June 2022.
The Philippine weather bureau, Pagasa, on Tuesday issued an advisory that El Niño’s impact will be most pronounced in the latter part of 2023 and will extend until the second quarter of next year.
“The balance of risks to the inflation outlook continues to lean towards the upside owing to the potential impact of additional transport fare increases and minimum wage adjustments, persistent supply constraints of key food items, El Niño weather conditions, and possible knock-on effects of higher toll rates on prices of key agricultural items. Meanwhile, the impact of a weaker-than-expected global economic recovery remains the primary downside risk to the outlook,” BSP said in a statement… Read More
