Easing price pressure and lagged effects of recent cuts to borrowing costs should support consumer and investment spending, paving way for a better fourth-quarter economic performance.

Inflation: Low and slow

Consumer price rise for the full year 2024 appears to be well under control in the near term, following the surprisingly low September print of a 1.9% year-on-year. Annual headline inflation for the remaining months of the year will remain below the 3% level, averaging 3.2% for the full-year 2024, well-within the Bangko Sentral ng Pilipinas’ 2-4% inflation target.

Higher oil prices amid geopolitical tensions remain the biggest upside risk to inflation. Yet these remain at manageable levels compared to the same period last year and while needing monitoring may not necessarily require a