THE eruption of Taal Volcano earlier this week could accelerate the country’s inflation to as high as 3 percent at the start of the year, according to a Philippine National Bank (PNB) economist.

In a report on Wednesday, PNB chief economist Jun Trinidad said the Tan-led lender sensed a macro downside risk from the effects of Sunday’s calamity and would take its toll on inflation, rather than on domestic demand that could undermine growth prospects.

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