OCBC Cuts Philippines 2026 Inflation Forecast to 6.0% from 7.5% Amid El Niño Risks

According to OCBC, the bank's economists on July 7 cut their 2026 inflation forecast for the Philippines to 6.0% from 7.5%, citing risks from El Niño-related supply disruptions and peso volatility. Persistent drought conditions could reduce agricultural output and raise food prices, particularly for rice and vegetables, pressuring overall inflation given food's large weight in the consumer price basket. Despite easing energy prices, El Niño remains a key risk factor for the inflation outlook.
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