Good news on inflation (except in the Philippines)

The past week has brought mostly good news on the inflation front. Of the nine countries in the region to have reported November inflation figures, the y/y rate dropped or was stable in eight of them. The exception was the Philippines, where the headline rate rose to a new 14-year high of 8.0% y/y. The jump in inflation means another rate hike at the central bank’s (BSP) final meeting of the year on Thursday is highly likely. It also poses a threat to our forecast that the BSP will bring its tightening cycle to an end early next year.