BSP sees Oct inflation slowing to 1-yr low

Reuters

Posted at Oct 27 2010 12:21 PM | Updated as of Oct 27 2010 08:21 PM

MANILA, Philippines - The Bangko Sentral ng Pilipinas expects annual inflation in October to come in between 2.6 percent and 3.5 percent, BSP Gov. Amando Tetangco said on Wednesday.

"Inflation is likely to remain low as increases in international oil prices and water rates are being offset by the appreciation of the peso and declines in electricity rates," Tetangco said in a mobile text message to reporters.

"Based on this forecast, average inflation during the policy horizon is expected to be well-behaved, barring surprises, particularly in terms of global adjustments."

"We will continue to monitor domestic and international developments to ensure that our monetary policy stance remains appropriate and responsive."

The low end of the forecast range would be the slowest since October 2009.

The annual inflation rate in September was 3.5 percent, below market and central bank forecasts and the slowest since November 2009.