MANILA, Philippines - Philippine annual inflation in February will likely come within the 3.4% to 4.5% range after a 4.3% rise in January, a senior central bank official said on Friday.

Deputy Governor Armando Suratos said the country remains on track to meet this year's and next year's inflation targets of 3.5% to 5.5% and 3% to 5%, respectively.

"This confirms our view that current interest rate settings are broadly appropriate and monetary policy can continue to aim at maintaining the momentum of demand in economic activity, while being closely attentive to signs of latent inflationary pressures," Suratos said in a mobile text message to reporters.

Inflation averaged 3.2% in 2009. The higher inflation rate for 2010 would be caused by supply tightness in key agricultural products due to the ongoing dry spell, and pending adjustments in domestic power rates, the central bank previously said.

The monetary authority, which kept an accommodative policy to induce growth amid the global crisis, said it was preparing an exit strategy in light of economic recovery and the upward shift in inflation.

The central bank kept its key policy rate at a record low of 4% at its January 28 meeting, but raised the rate on a short-term lending facility as its first step in unwinding easy monetary policies. With a report from Reuters