Stagflation possible as rising prices weigh down growth: analyst

ABS-CBN News

Posted at Jun 13 2022 07:37 PM

Watch more News on iWantTFC

MANILA - The Philippine stock exchange lost nearly 1 percent on Monday, tracking other markets in the region. This was the third straight day of losses for the PSE, and followed the 3.38 percent bloodbath last Friday. 

The decline followed data showing US inflation jumped 8.6 percent in May, the fastest pace since December 1981.

An analyst said investors were “taken aback” by the US inflation data, but there was an even bigger worry for the world economy, as the war in Ukraine sends fuel and food prices rising.

“Inflation isn’t the worry, it might even cross over to stagflation,” said Luis Limlingan, head of sales of Regina Capital Development Corp.

Stagflation is a period of slow or flat growth accompanied by high inflation. 

Philippine inflation hit 5.4 percent in May as fuel and food prices kept rising.