<p><strong>GLOBAL:</strong> The US consumer price index (CPI) eased to 3.5% year-on-year in June from the previous month’s 4.2%, lower than expected. A steep drop in fuel costs provided relief.&nbsp;</p>

<p><strong>Market impact: </strong>US equities advanced, while Treasury yields and the US dollar declined following softer-than-expected inflation data.</p>

<p><strong>Renewed energy price shocks will keep inflation sticky in the near term, </strong>with oil prices hovering back above the USD 80/barrel level.</p>

<p><strong>LOCAL: </strong>The information technology-business process management (IT-BPM)’s best-case revenue target for 2028 has been cut to USD 50.5 billion, down from about USD 58.9 billion due to the rapid adoption of AI across global business services.</p>

<p><strong>Market impact: </strong>The PSEi and the peso extended their decline amid ongoing tensions in the Middle East.</p>

<p><strong>The slowdown in the IT-BPM sector will have a tangible impact on economic growth as it accounts for more than 8% of GDP. </strong>Furthermore, less foreign exchange inflow will also affect the local currency.&nbsp;</p>