MANILA – The economy grew 6.8 percent in the first 3 months of the year, meeting analysts’ expectations, but at the same time reflecting faster inflation that slowed consumer spending.
Without the effects of inflation, real gross domestic product growth in the first quarter would have fallen “well within” the full-year goal of 7 to 8 percent, Socioeconomic Planning Secretary Ernesto Pernia said.
“Inflation is the spoiler. That is why we need to really focus on inflation, especially because it is the number one concern expressed by Filipinos in surveys,” Pernia told reporters.
The government needs to “address sources of rising inflation” even as the uptick in prices will “gradually ease this year,” Pernia said. Mitigating measures such as unconditional cash transfers to the poor should be hastened, he said.
The Bangko Sentral ng Pilipinas is expected to raise the benchmark borrowing rate by 25 basis points later Thursday after inflation in April reached 4.5 percent, the highest in over 5 years.
