Manila - XINHUA
Philippine inflation is not expected to increase significantly despite the depreciation of the peso, which could make imported products such as fuel more expensive, the local central bank said Wednesday. Philippine central bank officials said the stability of world commodity prices also helps keep inflation in check. Inflation for 2014 is expected to settle at 4.5 percent, well within the 3 to 5 percent target set by the government this year. The peso closed at 45.3 against the U.S. dollar on Jan. 27, its weakest since May 2010. Its depreciation was attributed to the decision of the United States Federal Reserve to cut its stimulus program. Philippine central bank officials noted that the impact of the exchange rate to inflation has been declining in recent years due to the productivity of the country's economy. The Philippines is a net importer of a number of commodities such as fuel, electronic products, and food.