The Philippine economy remains in an extended sweet spot considering the strong outlook for growth and the prevailing low-inflation environment, according to the DBS Group.The financial service provider said in a research note that such an environment enables the Bangko Sentral ng Pilipinas to maintain low policy rates over the short term. `Notably, the latest inflation print came in at just 3.4 percent year-on-year and this figure is actually skewed higher due to an increase in sin taxes,` DBS said. Earlier this week, the National Statistics Office reported that inflation inched up to a six-month high, mainly due to a 29-percent uptick in prices of tobacco and alcohol following the implementation of jacked-up excise tax rates. Another major factor cited was the continued rise of the heavily weighted food and non-alcoholic beverage group in the consumer price index.
DBS predicts `extended sweet spot` for country
