Philippine August inflation slows; targets met

Sep 5, 2007 - Philippine consumer prices rose at a slower pace of 2.4 per cent in August from 2.6 per cent the previous month, with the government on track to meet its inflation targets, officials said Wednesday.

The lower inflation rate was due to the slower annual price hikes of all the commodity groups, except for clothing, the National Statistics Office said.

Central bank governor Amando Tetangco said with the benign figure in August, the Philippines was on track to meet its target of containing inflation to between 4 and 5 per cent for the whole year.

Government, however, would remain vigilant on 'risks to guide our conduct of monetary policy going forward'.

'Our neutral monetary policy is bolstered by moderating risks from liquidity growth and adverse weather conditions,' he said.

The NSO said Inflation for food alone slid to 2.5 per cent from 2.8 per cent in July. Inflation for fuel, light and water group slowed to 5.1 per cent from 5.3 per cent.

The low inflation figure was announced just days after government boasted the economy had expanded 7.5 per cent year-on-year in the second quarter, the fastest growth clip in two decades.

President Gloria Arroyo on Tuesday said sub-prime woes that has wreaked havoc in world markets would likely not affect Philippine growth.