Manila - AFP
Philippine inflation hit a 26-month high of 4.6 percent year-on-year in June, the government said Tuesday, a month after the central bank said pressure on price increases was easing. The figure is up from May\'s 4.5 percent and represents the quickest rate of annual price increases since the 4.8 percent recorded in April 2009, National Statistics Office data showed. The average for the first six months of the year was 4.3 percent. The central bank, in a statement, blamed the higher inflation on increases in the prices of electricity, gas and other fuels brought on by rising global oil prices. However the inflation rate was still within the central bank\'s forecast of 4.6 to 5.5 percent for the month, it added. Price pressures were showing \"signs of moderation\", central bank governor Amando Tetangco was quoted in the statement as saying. But he also warned that \"the inflation outlook continues to be at risk given that prices of imported commodities are expected to remain elevated\". He said the bank would continue to be vigilant against inflationary pressures. After the central bank raised its key lending rates by a total of half a percentage point in March and May, governor Tetangco had said last month that inflation had slowed. The bank\'s policy-setting monetary board next meets on July 28. The overnight borrowing rate stands at 4.5 percent and the overnight lending rate at 6.5 percent.