The Philippine central bank expects average inflation in 2006 to come in below its forecast of 7.3 to 7.9 percent, Deputy Governor Diwa Guinigundo said. Inflation averaged 7.1 percent in the first six months of the year, and the central bank has said it expects pressure on consumer prices to ease in the second half.
Consumer prices would stabilise after a rise in the national sales tax rate in February and with expectations of good farm output boosting food supply.
"The average will likely be lower than the 7.3-7.9 percent forecast," Guinigundo told reporters. "And we still maintain the view that inflation will continue to ease in the second half of 2006."
Earlier this week, the statistics office said Philippine consumer prices rose 6.7 percent in June from a year earlier, down from 6.9 percent in May due to a lower price increase in most components except for housing and repairs.
Guinigundo said he expected inflation in the year through July to ease further.
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