Philippine inflation hits 26-month high

MANILA – Philippine inflation hit a 26-month high of 4.6 percent in June, the government said on Tuesday, a month after the central bank said pressure on price increases were easing.

The figure is up from May’s 4.5 percent and is the represents the quickest rate of price increase since the 4.8 percent recorded in April 2009, National Statistics Office data shows.

“Higher annual increments were recorded in alcoholic beverages and tobacco; clothing and footwear; housing, water, electricity, gas and other fuels; transport, recreation and culture; education; and restaurants,” it said.

The average for the first six months was 4.3 percent.

After the central bank raised its key lending rates by a total of half-percentage-point in March and May, central bank governor Amando Tetangco had said last month that inflation had slowed.

Tetangco said on Tuesday that the central bank was monitoring whether the price increases were becoming more broad-based, according to Dow Jones Newswires.

“We will ensure that our monetary policy stance remains appropriate to sustain non-inflationary economic growth,” Tetangco said.

The bank’s policy-setting monetary board next meets on July 28.

The overnight borrowing rate stands at 4.5 percent and the overnight lending rate is at 6.5 percent.