Inflation Problems? No kidding...

[Jung]

Anyone who lives here and is paying the high prices for gas and other things, especially electricity (our bills have been skyrocketing!), find no new information in this article...

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Philippine inflation up, warning of further rises

Philippine inflation rose 4.5 percent in May, data showed Tuesday, but the central bank warned that while it was in line with forecasts there was upward pressure on prices despite interest rate hikes.

The headline inflation rate compared with a 4.3 percent year on year jump in April, the National Statistics Office said.

"Higher annual growths were recorded in the indexes of clothing, fuel, light and water and miscellaneous items," the government agency said in a statement.

This brought the the five-month index up to 4.2 percent, which is now closer to the high end of the government's full-year target of 3.0-5.0 percent.

Core May inflation, which excludes volatile food and energy items, rose 3.7 percent compared with 3.3 percent in April.

Central bank governor Amando Tetangco said that while the May inflation figure was at the low end of the the bank's forecast of 4.5-5.5 percent, the increase from April suggests pressures remain, Dow Jones Newswires reported.

"This calls for continued close monitoring of possible sources of inflationary impulses and their likely impact on future inflation and inflation expectations," he added.

The central bank's policy-making Monetary Board is scheduled to meet next week to decide on its next rate move.

Last month it raised interest rates for the second time in six weeks in an effort to tame inflation, and warned it may have to act again.

The overnight borrowing rate in the Philippines stands at 4.5 percent and the overnight lending rate is at 6.5 percent.