MANILA - The country's inflation rate already bottomed out in August and will accelerate in the succeeding months, according to the Bangko Sentral ng Pilipinas (BSP).

"We may have already seen the trough [of inflation] in August," said BSP Governor Amando Tetangco Jr.

He added, "it will accelerate starting september as consumer demand picks up amid a gradual recovery of the domestic and global economies from the crisis."

Inflation rose by 0.1% in August, its slowest pace in 22 years, bringing the average rate for the first 8 months of the year to 3.7%.

Tetangco said the August figure boosted their expectation that their full-year inflation target of 2.5-4.5% would be met.

As inflation continues to be manageable, the BSP chief said monetary settings remain appropriate at the moment.

He noted, however, that the central bank "will continue to review developments especially any price pressures that could arise from improvements in global demand as sentiment continues to turn positive."