MANILA, Philippines -- The Bangko Sentral ng Pilipinas, the country's central bank said Monday it has set an average inflation target of 3.5 to 5.5 percent for 2010, lower than the forecast range of 6.0-8.0 percent average inflation for 2009.

"The inflation outlook has moderated with the decline in food and oil prices from peaks observed during the early part of the year," the central bank said in a statement.

"Demand-pull price pressures are also likely to ease following the expected moderation in domestic economic activity as a result of the global economic slowdown," it said.