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Economy

Philippines cuts growth targets as inflation erodes consumption

Government to slash non-infrastructure spending to offset lower tax revenue

MANILA -- The Philippines on Tuesday slashed its growth target for 2018 in response to global economic uncertainty and rising commodity prices, which are lifting the country's inflation rate and dragging down household spending.

In an attempt to keep inflation in check and prop up consumer spending, the government has suspended a scheduled increase in the fuel excise tax for next year. This puts President Rodrigo Duterte and his economic team in a bind as they try to fund the government's 2019 spending plans.

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