MANILA: Consumer inflation in the Philippines accelerated to an 18-month high in September as prices rose for food and utilities, but the central bank said there was no need to change its monetary policy stance.
The consumer price index rose 2.3% in September from a year earlier, the fastest pace since March 2015, data from the Philippine Statistics Authority showed on Wednesday.
Analysts polled by Reuters had expected a rise of 2.1% compared with 1.8% in August.
Core inflation, which strips out volatile food and energy items, also stood at 2.3%, its loftiest since April last year.
Bangko Sentral ng Pilipinas governor Amando Tetangco said the latest inflation data were within the forecast range and are consistent with the central bank's expectation that it will slowly edge up towards the government's target range of 2%-4% over the policy horizon.
?This also confirms that at the moment there is no compelling reason to change settings on our policy rates," Tetangco said in a text message to reporters.
The central bank held its key interest rates steady at its last policy meeting on Sept 22.
It has kept its overnight borrowing rate at 3% since June when it moved to an interest rate corridor system, a push to guide market interest rates towards its main policy rate.
Inflation averaged 1.6% in January-September, largely in line with the central bank's forecast of 1.7% for the year.
Prices of food and non-alcoholic beverages, which account for the bulk of the consumer price index with a 39% weighting, rose 3.1% last month, accelerating from 2.4% in August, the statistics agency said.
Cost of housing, water, electricity, gas and other fuels rose 0.9%, versus a 0.2% increase in August.
?Inflation will remain low and stable for the rest of the year with the continuous expansion of the domestic economy, solid private household consumption and investment, buoyant business and consumer sentiment, and adequate credit and domestic liquidity," said Rosemarie Edillon from the National Economic and Development Authority. - Reuters
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