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Economists trim the Philippines' inflation forecast to 1.9%

Staff writer |
The Bangko Sentral ng Pilipinas (BSP) said the results of a March survey of economists "yielded lower mean inflation forecasts" for 2016 relative to the December 2015 survey.

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For 2016, the mean forecast was 1.9 percent, down from the 2.5 percent recorded in December. The latest figure is lower than the 2.1 percent the central bank expects this year.

Meanwhile, the average annual inflation forecast for 2017 was unchanged at 2.7 percent, lower than the 3.1 percent forecast of the BSP. Mean inflation for 2018, on the other hand, was at 3 percent.

The survey noted that based on the probability distribution of the forecasts provided by 23 out of 28 respondents, there is a 46.3 percent chance that average inflation for 2016 will settle between the 1 percent to 1.99 percent range.

In addition, the respondents said there is a 46.4-percent chance that 2016 inflation rate will fall within the 2 percent to 4 percent target range.