Goldman Sachs economist: Philippine CPI shows energy-driven inflation has risen significantly

Goldman Sachs economists stated that the Philippines CPI data showed a significant increase in energy-related inflation last month, providing a reason for interest rate hikes. It is worth noting that core inflation and other underlying price indicators increased in March, and the Philippine central bank has stated that it will monitor these indicators to assess whether the rise in energy prices will be limited to a few goods. Goldman Sachs pointed out that PMI data also show cost pressures are building up, partly due to conflicts in the Middle East. The government has reached agreements with businesses to freeze the prices of basic necessities, but this agreement is only valid until April 16. Goldman Sachs believes that prices of frequently purchased consumer goods may experience a general increase after that. Goldman Sachs continues to forecast that the Philippine central bank will raise interest rates by 50 basis points in the second quarter.