Philippine annual inflation may hit its bottom in the third quarter following base effects from rapid increases in commodity prices in the same period of 2008, officials of the Bangko Sentral ng Pilipinas (BSP) said on Friday.

"Inflation would decelerate and likely bottom out in third quarter 2009 when base effects from last year's peak in Q3 dissipate," Cyd Tuano Amador, a managing director at the BSP, told reporters.

An economic planning official said earlier this week inflation could slow to zero percent in July or August.