MANILA, Philippines—Despite an inflation spike in January and fears of the recession wrapping around the first quarter of 2021, the Philippines is nowhere near a dreaded stagflation, or a combination of high inflation and GDP contraction, even as prices were expected to rise quicker throughout the year, according to economists on Tuesday (Feb. 9).
“There is no reason to worry about stagflation. At least not yet,” said Moody’s Analytics’ chief Asia-Pacific economist Steven Cochrane in a report.
The rate of increase in prices of basic commodities jumped to a two-year high of 4.2 percent last month, already beyond the government’s 2 to 4 percent target range, due to expensive food, …
Keep on reading: Economists: No stagflation yet, but higher prices of goods to linger