MANILA: Philippine inflation likely eased for a fifth straight month to a record low in July, allowing the central bank to keep its accommodative policy to support economic growth, the chief economist of the Department of Finance said on Wednesday.
Inflation likely cooled to 0.7 percent in July from a year earlier due to slower price increases for food and falling fuel and electricity costs, Finance Undersecretary Gil Beltran said in an email to reporters.
His estimate falls within the central bank's 0.5-1.3 percent forecast for the month.
"Lower inflation will allow BSP (the central bank) to maintain accommodative monetary policy that will sustain rapid economic growth," Beltran said, adding it will help dampen the adverse impact from Greek debt crisis, China's economic slowdown and an expected rise in US interest rates.
Central bank Governor Amando Tetangco, in an interview with Reuters on July 22, said he saw no need to alter monetary policy settings for now but cited the potential threat of an extended El Nino as one of the reasons to be careful.
The central bank next meets on Aug. 13 to review policy.
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