Global Business

Filipinos are expected to spend more next year especially on recreation amid government stimulus measures for sectors badly hit by the coronavirus pandemic, and as more people return to work, according to Fitch Ratings.

Household spending will probably grow by 5.7% in 2021 after shrinking by 8% by year-end, the global research firm said in a report on Friday.

Household spending on recreation and culture is expected to grow by 15.3% next year — the fastest among all sectors — after shrinking by 17.8% this year, Fitch analysts said.

Filipino spending on furniture and homes is also expected to increase by 13.7% after contracting by 15.2% this year, while spending on hotels and restaurants will probably grow by 10.5% after shrinking by 16.8% this year, Fitch said.

Spending on alcoholic drinks and tobacco is expected to rise by 10.4% from a contraction of 16.7% by year-end.

Spending on clothing and … Read the rest

The rise in consumer prices is expected to fall within 1.9% to 2.7% this month as lower fuel prices and water rates temper rising electricity costs, according to the Philippine central bank.

Inflation would probably settle at 2.3%, the same rate as in September, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno told reporters in a Viber group message on Friday.

Inflation eased for the second straight month in September due to a slower increase in food prices. This brought the nine-month average to 2.5%, which was within the central bank’s 2-4% target for the year.

“Higher electricity rates in Meralco-serviced areas, increases in LPG and kerosene prices and the impact of weather disturbances on selected food items contributed to upward price pressures for the month,” Mr. Diokno said.

These could be partly offset by lower prices of gasoline, diesel and rice, as well as lower water rates for … Read the rest