Consumer prices in Philippines continued to rise reaching the highest in eight straight months, and that pressures the central bank to start raising interest rates from its low records in order to control inflationary pressures.
Philippines CPI (YoY) reading for December came in at 4.4% compared with a prior 2.8% and it came higher than analyst's estimates of 4.2%. Consumer prices (MoM) rose 0.6% in December which is the same previous reading, and it also topped the forecasted reading of 0.4%.
Inflation accelerated last month as oil and food costs are rising, worth mentioning that Philippine depends mainly on its imports of oil which witnessed an increase in the commodity price over twelve months by 60%.
However, the government's stimulus plan of 330 billion pesos that concentrates on the interior front, providing job vacancies and cash handouts for households, helped to raise demand levels after it was hit by the worst recession since WWII, so prices increased since demand is recovering.
The central bank slashed the nation's benchmark to 4%, the lowest level since 1990 to boost economic growth, noteworthy that the nation's GDP grew 0.8% in the third quarter from a year earlier, after expanding in the same percentage in the previous quarter and growing 0.6% in the first three months of last year.
Meanwhile, experts shows pessimistic opinions about the Philippines economic recovery which appeared to be slow, and it is anticipated to retain its pace till the third quarter of this year.
The central bank is evaluating the step of increasing interest rates to control the accelerating inflation especially with energy and food prices continue to rise. One the other hand, Mr. Diwa Guinigundoi the central bank deputy governor said that interest rates will be the last thing to change in 2010.
Philippines CPI (YoY) reading for December came in at 4.4% compared with a prior 2.8% and it came higher than analyst's estimates of 4.2%. Consumer prices (MoM) rose 0.6% in December which is the same previous reading, and it also topped the forecasted reading of 0.4%.
Inflation accelerated last month as oil and food costs are rising, worth mentioning that Philippine depends mainly on its imports of oil which witnessed an increase in the commodity price over twelve months by 60%.
However, the government's stimulus plan of 330 billion pesos that concentrates on the interior front, providing job vacancies and cash handouts for households, helped to raise demand levels after it was hit by the worst recession since WWII, so prices increased since demand is recovering.
The central bank slashed the nation's benchmark to 4%, the lowest level since 1990 to boost economic growth, noteworthy that the nation's GDP grew 0.8% in the third quarter from a year earlier, after expanding in the same percentage in the previous quarter and growing 0.6% in the first three months of last year.
Meanwhile, experts shows pessimistic opinions about the Philippines economic recovery which appeared to be slow, and it is anticipated to retain its pace till the third quarter of this year.
The central bank is evaluating the step of increasing interest rates to control the accelerating inflation especially with energy and food prices continue to rise. One the other hand, Mr. Diwa Guinigundoi the central bank deputy governor said that interest rates will be the last thing to change in 2010.
