BSP sees August inflation at 2.9-3.8% y/y

Reuters

Posted at Aug 28 2012 11:41 AM | Updated as of Aug 28 2012 07:41 PM

MANILA - The Philippine central bank said on Tuesday it expects annual inflation in August at 2.9 to 3.8 percent due to higher food prices and utility rates, but sees consumer prices staying manageable over the policy horizon.

Governor Amando Tetangco said upward price pressures due to weather-related supply disruptions would be temporary, adding that the central bank will adjust policy and adopt prudential measures, if needed, to protect its inflation target.

Annual inflation hit a six-month high of 3.2 percent in July, and analysts expect the central bank to hold off on cutting interest rates when it next meets in September, with prices likely to stay high due to supply shocks.