Inflation at New Near-17 Year High

by BUSINESS WORLD ONLINE

Saturday, September 6, 2008 MANILA, PHILIPPINES

Inflation hit a new near-17 year high in August but the results, up slightly from a month earlier, could be the peak for 2008.

The rise in consumer prices was 12.5% last month, up from July’s 12.3% due to what the National Statistics Office said were higher prices in a number of commodity groups. The result was the highest since December 1991, when inflation topped 13%.

The Bangko Sentral ng Pilipinas (BSP) called it a "positive development", and predicted a further slowdown if food and oil prices continue to drop. "These developments are positive for the inflation outlook and the BSP will watch these closely to see if the slowdown would continue and be more generalized," central bank governor Amando M. Tetangco, Jr. said in a text message.

"If [the positive developments in prices of food and oil] continue, the pace of inflation will slow down further," he added.

Food prices went down in August but costs of other important commodity groups such as fuel, light, water and clothing still grew faster during the month. Read Full Story...