Philippines Aug inflation seen hitting top end of BSP target

Posted at 09/02/14 12:43 PM

MANILA - Philippine annual inflation in August is expected to hit the upper limit of the central bank's target for the first time in nearly three years, a Reuters poll showed, driven by higher food and electricity prices.

The median forecast in a Reuters poll of 11 analysts was for annual inflation to have accelerated to 5.0 percent, the fastest since October 2011.

If the estimate is correct, it would be the first time in nearly three years that inflation reached the top end of the central bank's 2011-2014 inflation target of 3-5 percent.

The central bank last week forecast August inflation around 4.7-5.5 percent.

Core inflation, which strips out volatile food and energy prices, was seen at 3.2 percent, picking up from July's 3.0 percent.

Inflation on a month-on-month basis is expected to slow to 0.4 percent from 0.6 percent in July.

The central bank has a 2-4 percent goal in 2015.