Agence France-Presse

MANILA - Consumer prices in the Philippines should stabilize over the next two years after spiking to a 16-month high of 5.4 percent last month, the central bank said Thursday.

With the US economy showing signs of a slowdown, the central bank said the main risk from volatile world oil prices and higher global commodity prices should be moderated by slower global economic activity.

"The inflation outlook remains manageable over the two-year policy horizon," it said in a statement. The year-to date average is at 5.1 percent.

Inflation slowed to a 20-year low of 2.8 percent in 2007, with the strong peso moderating the impact of surging oil prices.