Philippines' May inflation hits 4-month low

[MANILA] Philippines' annual inflation eased to its slowest pace in four months in May, reflecting slower price increases for eight commodity groups including food and non-alcoholic beverages, official date from the statistics agency showed on Tuesday.

The annual rate of consumer price inflation was 3.1 per cent in May, below economists' forecast for an increase to 3.3 per cent, supporting market expectations the central bank would leave interest rates unchanged at its June 22 meeting.

Last month's inflation print was within the central bank's 2.9-3.7 per cent projection, and the 2-4 per cent target for the year.

Core inflation, which strips out volatile food and fuel items, was 2.9 per cent in May, easing slightly from 3 per cent in April.

Prices rose 0.1 per cent in May from April.

REUTERS