MANILA - Monetary authorities should address signs that the Philippine economy, one of the fastest-growing in Asia, is overheating, an economist said Thursday.

Research from ASEAN + 3 Macroeconomic Research Office or AMRO cited inflation that had breached Manila's 4-percent ceiling and a widening current account deficit.

"Certainly, these are signs the economy is operating at full and then there are bottlenecks," said AMRO Chief Economist Hoe Eee Khor.

"Our view is that it's time for parties to take measures, to make sure it doesn't (get) overheated. By doing a bit of tightening, it's possible for inflation to come back down and CA to remain sustainable," he said.

Rising consumer prices shows that the Philippines, like Japan, is on a "late" business cycle, he said.

Bangko Sentral ng Pilipinas Deputy Governor Diwa Guinigundo said a new tax regime and high fuel prices was behind the spike in inflation and "monetary policy doesn't normally respond to supply side."

"Challenges" in the current account also don't point to an overheating economy, he said.