DBS: Inflation likely to peak at 5-6% in Q2

Inflation in the Philippines could hit 5.0-6.0 percent in the second quarter of the year and monetary authorities will likely move to address rising prices by hiking key interest rates next month, Singapore-based bank DBS said.

“Having risen above the official 2-4 percent target to 4.3 percent year-on-year in March, CPI (consumer price index) inflation is only expected to top out around 5-6 percent in May-June from the tax reforms, not helped by a weaker exchange rate,” DBS said in a report released on Wednesday.