MANILA, Philippines -- Annual inflation in August probably climbed to a fresh 17-year high of 12.5 percent, raising the risk of another rise in interest rates before the end of the year, a Reuters poll shows.

Forecasts from 12 economists ranged from 11.6 percent to 13 percent for the annual rate of inflation in August. The central bank has forecast a range of 11.8 percent to 12.6 percent.

The median forecast of the Reuters poll was 12.5 percent, higher than July's actual inflation rate of 12.2 percent. Central bank governor Amando Tetangco said Sunday that battling red-hot inflation remained the top priority for the monetary authority since a lack of price stability would dampen already slowing economic growth.

The central bank has raised rates by 1 percentage point in a tightening cycle that began in June. Analysts said the bank would remain hawkish since it has set its sights on ensuring inflation is contained within targets in the next two years.

"If they are serious in bringing down inflation in 2009, they might need insurance moves and that may imply one or two more rate hikes," said Jose Mario Cuyegkeng, economist at ING Bank.

"It depends on data and the outlook on commodity prices," he said.

The next rate-setting meeting will be on Oct. 9, giving the central bank time to study two months of official inflation data.

However, analysts said the slowing pace of economic growth would weigh more on policy makers following data last week that showed annual economic growth in the second quarter was the weakest in about three years at 4.6 percent.

"The central bank's tightening cycle may also be coming close to an end, not least as growth risks have increased of late due to the challenging external environment and slowing consumption domestically," said Frederic Neumann, regional economist at HSBC.

Still, there were favorable signs that the economy could grow faster in the second half, allowing the Philippines to post an average gross domestic product growth of at least 5.0 percent this year, deputy central bank governor Diwa Guinigundo said Friday.

Analysts said prices of food, particularly rice, have stabilized which, along with easing oil prices, would support a slower pace of price escalation in September and October, when inflation is most likely to reach its peak.

The central bank expects inflation to average 9.0 percent to 11 percent this year, way above the official target range of 3.0 percent to 5.0 percent.

But it expects inflation to ease to 6.0 percent to 8.0 percent in 2009, although that would still be higher than the official target of 2.5 percent to 4.5 percent.