Wednesday, 31 October 2012 11:34
MANILA: Philippine annual inflation probably eased in October as a strong peso dampened imported food and crude oil prices, lessening the chances of further interest rate cuts by the central bank in the near term.
The consumer price index may have risen by 3.5 percent in October from a year earlier, a Reuters poll of 12 economists showed, slightly slower than a 3.6 percent climb in September.
Core inflation, which strips out some of the more volatile components including food, likely was steady at 3.8 percent from September, the same poll showed.
"Inflation is expected to remain contained given the peso's strength against a backdrop of slightly higher service sector costs," said Prakriti Sofat, regional economist at Barclays Capital.
The central bank cut its key policy rate for a fourth time this year on Oct. 25 to a record low of 3.5 percent to help manage surging capital inflows.
It expects annual headline inflation to ...