Philippine CPI hits 26-month high

MANILA: Philippine inflation picked up pace in February to the fastest rate in 26 months, but the central bank said the spike should be viewed as temporary, signalling it would not be in a rush to reverse its accommodative monetary policy stance. The Consumer Price Index rose 4.7 per cent from a year earlier, against January’s 4.2 per cent increase, marking the second straight month that the headline figure was outside the official target of 2-4 per cent. It matched the median forecast in a Reuters’ poll and was within the central bank’s 4.3-5.1 per cent forecast for the month. Core inflation, which excludes volatile food and fuel prices, picked up to 3.5 per cent versus January’s 3.4 per cent, the statistics agency said. The inflation number reflects the impact of weather-related supply disruptions and African Swine Fever outbreaks on food prices, as well as base effects and costlier oil, the Bangko Sentral ng Pilipinas (BSP) said. “The overall balance of risks to future inflation continues to lean towards the downside owing mainly to the continued uncertainty caused by the pandemic on domestic and global economic activity’’, BSP Governor Benjamin Diokno told reporters. — Reuters