MANILA - The Bangko Sentral ng Pilipinas (BSP) said on Tuesday that September inflation data showing an uptick in consumer prices justified the decision to keep interest rates at a record low of 4% at its last policy meeting.

Philippine annual inflation rose to 0.7% in September, the first increase against the previous month since February, due largely to diminishing base effects from higher food and fuel prices last year.

'That does not detract us from the fact that BSP was quite right in keeping rates steady,' Deputy Governor Diwa Guinigundo told Reuters in a mobile text message.