<p><strong>GLOBAL: The US consumer price index eased to 3.4% year-on-year in July, </strong>primarily due to a substantial, though likely temporary, drop in energy costs.</p>

<p><strong>Market impact: US equities advanced, Treasury yields edged lower, and the dollar strengthened</strong> following in-line inflation data.</p>

<p><strong>Near-term US inflation is projected to remain stable,</strong> though escalating US-Iran tensions and a ceasefire collapse pose upside risks amid rising oil prices.</p>

<p><strong>LOCAL: The government is targeting PHP 860 billion in collections from value-added tax and sales-related taxes in 2027,</strong> reflecting higher revenue expectations from consumption and stronger tax administration.</p>

<p><strong>Market impact: The PSEi reached a three-week high,</strong> buoyed by earnings, while the peso recovered amid expectations of softer US inflation.</p>

<p><strong>However, revenue prospects remain constrained by weaker consumer demand,</strong> slower investment, and softer imports, potentially limiting overall growth.</p>