Philippine central bank sees Sept inflation at 0.2-1.0 per cent

[MANILA] Philippine annual inflation could ease further in September as downward adjustments in power rates and declining rice prices likely offset the impact of a weaker peso, the central bank said on Tuesday.

Bangko Sentral ng Pilipinas Governor Amando Tetangco said inflation in September could be between 0.2 and 1.0 per cent. Inflation in August was 0.6 percent. "The BSP will continue to monitor evolving price stability conducive to a balanced and sustainable economic growth," Mr Tetangco said in a phone text message to reporters.

Mr Tetangco said a "stronger and protracted El Nino" could add upside risks to inflation.

The Philippine central bank said on Monday it saw no need to tweak monetary policy at this point and may stay on hold possibly for the rest of the year as inflation is likely to remain benign.

REUTERS