MANILA: Philippine inflation accelerated to a four-month high in October after typhoon damage drove food prices up, but the increase is seen as temporary and the central bank will keep interest rates steady as it keeps a watchful eye on global economic turmoil.
Governor Amando Tetangco said he saw no need to adjust monetary policy at this point, but reiterated the central bank's readiness to act if needed to support economic growth.
Annual headline inflation rose to 5.2 percent in October, above market forecasts, driven by a 5.8 percent annual rise in food prices, based on a new series using 2006 prices.
"We continue to see inflation to be manageable over the policy horizon," Tetangco said in a text message to reporters.
The index under the old data series with 2000 as the base year rose 5.3 percent, picking up from the previous month's rise of 4.6 percent.
The central bank is using the 2000 series for its target of keeping average inflation between 3 and 5 percent. For the first 10 months, inflation under this series averaged 4.5 percent.
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