MANILA, Philippines—The current commodity price spikes in the Philippines are not the type caused by economic expansion but by supply problems which do not merit monetary response, according to the head of the Bangko Sentral ng Pilipinas (BSP).
On Monday (March 29), BSP Governor Benjamin Diokno said the country is far from experiencing this phenomenon called “reflation”, since higher inflation seen in recent months were the result of a “transitory” mess in supply of a narrow range of agricultural products and an increase in oil prices worldwide.
“Reflation is the act of bringing inflation from very low levels back up to its long-term trend after a period of disinflation and econo…
Keep on reading: BSP: No ‘reflation’ so no monetary move vs supply-induced inflation