MANILA: The Philippine central bank raised its inflation estimates for 2014 to 2016 due to the risks of higher food prices from tight supply conditions, pending utility rate increases and potential power shortages, a senior official said on Thursday.
The central bank now expects average 2014 inflation at 4.5 percent against 4.3 percent previously, and 3.8 percent in 2015 versus 3.7 percent, Diwa Guinigundo, central bank deputy governor, told reporters.
Both estimates are near the top end of the central bank's target of 3-5 percent this year and 2-4 percent for 2015.
Monetary authorities expect inflation to decelerate in 2016 to an average 3.0 percent, higher than a previous estimate of 2.8 percent.
The central bank earlier raised its policy rate for the second time in as many meetings and the rate on its short-term special deposit account to tame price pressures and manage inflation expectations.
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