Philippine inflation accelerates faster than expected in Sept

[MANILA] Philippine annual inflation accelerated faster than expected in September due to higher food, fuel and transport costs, the statistics agency said on Thursday.

The consumer price index rose 3.4 per cent in September, above economists' forecast for an increase of 3.2 per cent, but still within the central bank's forecast of 2.8-3.6 per cent for that month.

The September print, which matched the rates in March and April, brought the nine-month average inflation rate to 3.1 per cent, well within the central bank's 2-4 per cent target.

Core inflation, which strips out volatile food and fuel items, stood at 3.3 per cent, higher than the 3.0 per cent forecast in the poll.

A manageable inflation has allowed the central bank to leave its monetary policy unchanged since it raised interest rates by 25 basis points in September 2014.

The central bank expects inflation to average 3.2 per cent this year and 3.2 per cent next year.

REUTERS