MANILA, Nov 6, 2007 (AFP) – A strong peso offset rising oil prices and kept the Philippines inflation rate steady at 2.7 percent in October, the government said Tuesday. Last month’s inflation rate was within market expectations and the central bank’s forecast range of 2.5-3.0 percent.
“Price pressures from major food, non-food and fuel items were broadly mitigated by the peso appreciation,” central bank governor Amando Tetangco told reporters.
The US dollar has lost 10.49 percent of its value against the peso so far this year. The dollar was trading at 43.89 pesos Tuesday, compared to 49.03 pesos on the last trading day of 2006.
Core inflation, which excludes selected food and energy items prone to volatile price swings, rose at 2.4 percent from a year earlier in October, compared to 2.7 percent in September, the National Statistics Office said. Overall, the inflation rate for the 10 months to October stood at 2.6 percent.