Philippine inflation jumped to its highest level in more than two-and-a-half years in October as deadly typhoons wreaked havoc on the farming sector, the government said Friday. The October rate of 5.3 percent was up from 4.6 percent in September and the highest since March 2009, when inflation stood at 6.4 percent, the National Statistics Office said.
However the central bank said the spike was likely temporary and no interest rate hikes or other monetary intervention were immediately needed to meet inflation goals for this year and 2012. "The rise in October inflation was due mainly to higher prices of most food items, notably vegetables and fish, which reflected the agricultural damages wrought by typhoons," a central bank statement said. The central bank had already raised interest rates in March and May, followed in June by a rise in reserve requirements - the portion of deposits that banks must park in their vaults - to control inflation.
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