PHL inflation in 2011-2012 to settle within govt target — BSP

Despite the mounting prices of commodities in the world market, Philippine inflation for this year and the next will likely settle within the government's target of 3-5 percent, economists said in a report. The report, titled "BSP's Private Sector Economists' Inflation Forecast," showed that average inflation will remain steady at 4.1 percent for 2011 and 2012. National Statistics Office records showed that inflation averaged at 3.8 percent last year, well within the forecast range of 3.5 to 5.5 percent. Bangko Sentral ng Pilipinas (BSP) Assistant Gov. Ma. Cyd Tuano-Amador said economists believe that the continued appreciation of peso against the greenback would lessen the impact of higher global commodity prices on domestic inflation. BSP Gov. Amando Tetangco had earlier said average inflation could range from 3.8 to 4.2 percent this year "if the upside risks to consumer prices materialize." With the benign and stable inflation outlook, the central bank has enough room to keep its policy rates at record lows, Tetangco said. The policy-setting Monetary Board has placed the overnight borrowing and lending rates at 4 and 6 percent, respectively, since July 2009. — JE/KBK, GMANews.TV