Tuesday, August 05, 2008
July inflation rises to 12.2% (12 p.m.)
MANILA -- Inflation in the Philippines picked up to 12.2 percent in July, the highest in almost 17 years, amid a rise in food and fuel prices, the government said Tuesday.
The figure represents an increase from 11.4 percent in June, the National Statistics Office (NSO) reported. The overall annual inflation rate for food alone further climbed to 18.6 percent in July from 17.4 percent in June.
The data exceeded the central bank's expectations. Philippine central bank Gov. Amando Tetangco said last month he expected inflation to average between 9 percent and 11 percent for the entire year and peak at 12 percent before easing in the last quarter.
He said inflation would remain at double-digit levels through the first quarter of 2009 and hinted the central bank would further raise interest rates to control inflation.
Since June, the bank has twice raised rates by a total of 75 basis points - to 5.75 percent for overnight borrowing rates and 7.75 percent for overnight lending rates. (AP)
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