PHILIPPINE ECONOMIC GROWTH likely slowed to 2.5% in the second quarter as elevated inflation and subdued business confidence weighed on recovery, economists at the University of Asia and the Pacific (UA&P) said. Some soft recovery is underway, though persistent above-target inflation and subdued business optimism may undermine the recovery narrative,” it said. This would also bring the average growth to 2.6% in the first half, still below the government’s 3.5%-4.5% full-year growth target. It noted that while easing food and fuel prices should continue to temper headline inflation, persistent core inflation “suggests price pressures underlying remain entrenched.” UA&P said that inflation risks would likely keep the Bangko Sentral ng Pilipinas (BSP) on the hawkish side with 50 basis points (bps) of rate increases this year.