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Philippines GDP Growth 5.9% y-o-y (consensus 4.7) in Q3-23

- The Philippines saw a 5.9% year-on-year GDP growth rate in Q3-23, the highest since Q1-23, indicating a brisk economic recovery.
- Although beating market expectations by 1.2pp, the growth rate lagged behind the long-run average by 0.46pp.

Philippines CPI Inflation 4.9% y-o-y (consensus 5.6%) in Oct-23

- In October 2023, Philippines' CPI inflation rate dropped surprisingly sharply to 4.9% year-on-year, the lowest growth since July 2023, and below the one-year average.
- Core inflation also slowed to a year-on-year increase of 5.3% from 5.9%, indicating relatively persistent underlying pressures.

Bangko Sentral Ng Pilipinas: Oct-23

• The BSP’s off-cycle rate hike, driven by elevated inflation projections and the emergence of second-round effects, reflects a proactive stance in pre-empting inflationary pressures and stabilizing the economic environment.
• A balanced view of risks, considering both domestic and global factors, underscores the Monetary Board's commitment to a holistic approach to risk management, demonstrating an understanding of the intricate dynamics influencing inflation.
• The decision to maintain tighter monetary policy settings until a sustained downward trend in inflation is evident, coupled with support for fiscal and non-monetary measures, highlights a strategic focus on balancing economic growth with inflation control, guided by a flexible, data-driven approach.

Philippines CPI Inflation 6.1% y-o-y (consensus 5.3%) in Sep-23

- Philippines CPI inflation surged to 6.1% in September 2023, the highest since April 2023, contrary to consensus expectations for stable pressures at 5.3%.
- Despite the increase, the inflation rate remains 0.81 percentage points below the one-year average, showcasing that previous progress towards price stability hasn't been fully reversed.