Central bank says inflation within 2010 goal

Reuters

Posted at Oct 05 2010 03:36 PM | Updated as of Oct 06 2010 02:01 AM

MANILA, Philippines - The central bank said on Tuesday average inflation for 2010 will likely fall within the lower half of its target after September inflation dropped to a 10-month low, pointing to a manageable consumer price outlook.

"At 3.5%, this is a tad below the lower end of the BSP's forecast of 3.6% to 4.5% for the month, and puts the BSP full year 2010 within the lower half of the target range," Governor Amando Tetanngco told reporters via mobile text message.

"This also supports manageable medium term inflation outlook."

The central bank, which is targeting inflation of 3.5% to 5.5% this year, will meet on October 7 to review policy.

"Barring any unforeseen adverse price shocks, including volatility of international commodity prices, the BSP's (Bangk Sentral ng Pilipinas) current stance appears appropriate."

"Nevertheless, there continues to be a need to push for measures to improve absorptive capacity and to draw investments into employment generating projects."