Overseas news
US weekly jobless claims increased more than expected for the week ended January 11. It rose to a seasonally adjusted 217,000 from 203,000 in the previous week.
Meanwhile, US retail sales grew 0.4% month-on-month in December as households bought motor vehicles and a range of other goods.
The latest data points to strong demand for goods, which further reinforces the US Federal Reserve’s (the Fed) cautious approach to cutting interest rates this year.
While strong consumer demand is nominally good, it can drive up prices and make it difficult for inflation rates to go down.
Central banks such as the Fed use changes in the key rate to manage inflation. If they feel the need to temper inflation, they may keep interest rates high or slow down the pace of rate cuts.
Oil prices dropped on Thursday as Yemen’s Houthi militia is expected to stop its attacks on ships in the Red Sea and as investors reacted to the strong US retail sales data.
Many industries, including transportation and manufacturing, are affected by changing oil prices. So, consumers can be affected directly (through fuel costs) and indirectly (through the prices of products and services).
Local developments
The Department of Trade and Industry (DTI) has approved price increases for 63 commodities, equivalent to 28% of the commodities covered by the suggested retail price (SRP) bulletin.
The price increases are meant to help manufacturers address the increasing costs of raw materials and labor, DTI said.
Meanwhile, the Philippine financial sector’s total resources rose by 8.8% year-on-year as of end-November according to preliminary data from the Bangko Sentral ng Pilipinas (BSP).
The report covers the total resources of banks and non-bank financial institutions (NBFIs), including assets such as deposits, capital, and bonds or debt securities.
The growth may reflect an increase in business activity, fueling a rise in financial transactions and loan demand.
Today’s news shows little indication of major changes happening soon. You may want to adopt a wait-and-see approach as you look out for concrete developments.
