Philippines Central Bank Chief Says Inflation Remains Within Target

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The Philippine annual inflation remains within the target, although it accelerated in November, central bank governor Amando Tetangco reportedly said Friday.

In November, consumer price annual inflation rose to a 6-month high on rising food cost. The headline inflation rate was 2.8%, up from 1.6% in October. The central bank has set a target inflation rate of 2.5% to 4.5% in 2009.

"The resulting year-to-date average of 3.2% allows us to be comfortably within our 2009 target range," Tetangco said. The central bank will watch developments in the policy stances of the major central banks and any resulting shift in investor sentiment. "We will likewise consider trends in commodity prices and global and domestic demand to see if there would be a need to recalibrate policy," added Tetangco.

Yesterday, the Bangko Sentral ng Pilipinas set its inflation target at a range of 3% to 5% for 2011. The 2011 inflation target is lower than the 2010 target of 3.5% to 5.5%. "The outlook of relatively stable inflation over the policy horizon reflects expectations of economic activity gradually normalizing, inflation expectations remaining well-anchored, and base effects easing from previous years," the central bank said.

The Philippine annual inflation remains within the target, although it accelerated in November, central bank governor Amando Tetangco reportedly said Friday. (Market News Provided by RTTNews)