Nov. 5 (Bloomberg) -- Philippine inflation probably held close to an eight-month high in October on food and fuel prices, reducing the chances of a central bank rate cut next week.

Consumer prices rose 2.8 percent from a year earlier, according to the median estimate of 13 economists surveyed by Bloomberg. Inflation was 2.7 percent in September, the highest level since January. The National Statistics Office report is due at 9 a.m. tomorrow in Manila.

``Pressure from surging oil prices and higher food prices will persist until next year,'' said Vishnu Varathan, an economist at Forecast Singapore Pte. ``Given heightened inflation risks'' the Philippine central bank is unlikely to indicate that it may lower interest rates.

Bangko Sentral ng Pilipinas policy makers meet Nov. 15 to decide on the benchmark rate, at the lowest level since 1992 after two cuts this year. The price of crude oil, almost all of which the Philippines imports, last week surged above $96 a barrel for the first time in New York. Food prices have also climbed, central bank Governor Amando Tetangco has said.

Vegetable, milk and bread prices have gone up along with fuel and cooking gas, cement and water costs, Tetangco said on Oct. 30, when he predicted last month's inflation was between 2.5 percent and 3 percent. Food accounts for half of the index and fuel and utilities make up 7 percent.

Oil Price Gains

The price of crude oil in Dubai, the measure used by Philippine economic planners, has risen by about 50 percent a barrel this year and breached $85 a barrel for the first time last week.

Bangko Sentral policy makers cut the overnight borrowing rate by a quarter point to 5.75 percent at their last meeting.

The Philippines' broadest measure of money-supply growth expanded 11.4 percent in September, the slowest pace in 17 months, as banks and investors continued to park funds in higher-yielding central bank accounts. Bangko Sentral is using the accounts to hold liquidity growth below 20 percent to avoid it fanning inflation.

The peso's 3.1 percent rise against the dollar last month, the most among Asian currencies tracked by Bloomberg, helped contain inflation by lowering import costs, including oil.

Gains in the peso will help keep consumer price increases this year within the central bank's target range of 4 percent to 5 percent, Tetangco said on Oct. 30.

Following is a table of economists' estimates for consumer prices in October from a year earlier and the previous month:

Philippine CPI

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                               CPI    CPI
Firm                           YoY    MoM
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Median                        2.8%   0.3%
Average                       2.8%   0.3%
High                          3.0%   0.5%
Low                           2.6%   0.1%
Number of Estimates             13      9
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Action Economics              2.6%   0.1%
BDO Unibank                   2.6%   0.2%
CIMB-GK Research              2.6%   0.1%
Credit Suisse                 2.7%   0.2%
DBS Group                     2.9%   0.4%
Forecast Singapore            2.9%   0.4%
HSBC                          2.9%     --
Ideaglobal                    2.8%     --
ING Groep NV                  2.9%   0.4%
Royal Bank of Scotland        3.0%   0.5%
Standard Chartered            2.8%   0.3%
Thomson IFR                   2.7%     --
UBS                           2.8%     --
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To contact the reporter on this story: Clarissa Batino in Manila at cbatino@bloomberg.net; Michael J. Munoz in Hong Kong at mjmunoz@bloomberg.net.

Last Updated: November 4, 2007 19:54 EST