Tame Philippine Inflation May Support More Monetary Easing

Philippine inflation accelerated in August but remained below the central bank’s target range, giving monetary authorities flexibility to reduce the key interest rate further this year.

Consumer prices rose 1.5% last month from a year ago, the Philippine Statistics Authority said on Friday, exceeding the median estimate in a Bloomberg News survey. While rice prices fell by a record low, overall food inflation quickened as bad weather pushed fish and vegetable costs higher.