Inflation rises to a 25-month high

Philippine consumer prices rose to a 25-month high in June, the National Statistics Office said Tuesday. In a report, the NSO said inflation rate in June climbed 5.2 percent, its fastest pace since the 5.6-percent uptick recorded in April 2009. "Higher annual increments were recorded in alcoholic beverages and tobacco; clothing and footwear; housing, water, electricity, gas and other fuels; transport, recreation and culture; education; and restaurants and miscellaneous goods and services index," the NSO added. For the year's first half, the country's inflation rate stood at 4.7 percent, near the top range of the 3-percent to 5-percent target of the Bangko Sentral ng Pilipinas. The NSO has also revised upward the inflation rate in May to 5 percent which was initially reported to have hit 4.7 percent. In June, the BSP has kept interest rates steady, saying that "inflation expectations have shown signs of leveling off." Instead, it directed banks to hike their reserve requirements by one percentage point, a step intended to mop off excess liquidity in the market. -- CMA/OMG, GMA News