October 3, 2018 / 2:34 AM / 19 days ago

Philippine inflation seen moving closer to seven percent in September: Reuters poll

MANILA (Reuters) - Philippine annual inflation rate likely continued to climb in September, keeping the pressure on the central bank to raise interest rates further to prevent consumer prices from spiraling out of control.

FILE PHOTO: A Philippines Peso note is seen in this picture illustration June 2, 2017. REUTERS/Thomas White/Illustration/File Photo

The consumer price index in September was seen to have risen by 6.8 percent, a Reuters poll of 12 economists showed, faster than the 6.4 percent increase reported in August, due to rising global oil prices and crop losses after the region was hit by a super typhoon. Their forecasts ranged from 6.3 to 7.0 percent.

The projection, which is in line with the central bank’s estimate, would be the highest since February 2009. The central bank gave a forecast range of 6.3 percent and 7.1 percent for September and said the rate could settle around 6.8 pct.

FILE PHOTO: A vendor rests in her market stand that sells rice in Quezon City, Metro Manila in Philippines, September 5, 2018. REUTERS/Eloisa Lopez

At its policy meeting last month, the central bank maintained that inflation would peak in September and slowly ease back to within its 2-4 percent target next year, due to a combination of monetary and non-monetary measures including removing non-tariff barriers to certain agricultural imports.

The central bank raised its benchmark rates for the fourth time in five months on Thursday, pushing them to seven-year highs of 4.5 percent, and kept the door open for further tightening as it battles to cool inflation.

Some economists believe the central bank would deliver at least one more rate hike before the end of the year.

The Bangko Sentral ng Pilipinas, which has two more meetings left this year, has raised the rate on its overnight reverse repurchase facility by a total 150 basis points since May.

Reporting by Enrico dela Cruz; Writing by Karen Lema; Editing by Gopakumar Warrier

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