This is a bit stronger than we expected, mainly because of temporary factors, including higher prices for air travel, mobile phones and some food items. Our core inflation measures were also around 2 percent in July, which is consistent with the idea that the economy’s output gap is essentially closed.
In addition, our continuing support for landmark legislation such as the Islamic Banking Law will help promote real socioeconomic development in Muslim Mindanao and boost efforts to help our countrymen move forward from the economic effects of the pandemic.