The Philippines’ benchmark stock index sank to a three-month low and bonds fell on concern inflation will accelerate after regulators allowed the nation’s biggest power supplier to increase prices by a record. The peso weakened.
Philippine five-year bonds fell this week after inflation accelerated to a nine-month high and the central bank said consumer prices will keep rising in the aftermath of the recent devastating typhoon.
The Philippine economy grew at the slowest pace in more than a year last quarter, with damage from Super Typhoon Haiyan further crimping the outlook for full-year expansion before a reconstruction boost.
After Lyn Lyn Rael’s three-room house was swept away by Super Typhoon Haiyan, leaving her husband and five children homeless, she borrowed 25,000 pesos ($570), the equivalent of two months’ wages, from her employer in Singapore to send to her family.