PH December inflation seen at near 2-year high

Posted at 01/06/14 5:41 PM

MANILA - Inflation in the Philippines likely accelerated to its highest in nearly two years in December, a Reuters poll showed, on higher electricity charges and a spike in food prices due to weather-related supply shocks.

Annual inflation likely quickened to 3.9 percent in December from 3.3 percent in November, the fourth straight month of increases, but was still well within the central bank's 3-5 percent target range for 2013.

This led some analysts to believe the central bank will keep its key policy rate steady for some time.

The central bank has a 3.8-4.7 percent forecast for December inflation.