Manila - XINHUA
Philippine inflation will accelerate to 3.8 percent to 4.7 percent in December due to higher power and food prices, the local central bank said Thursday. Central bank officials said the increase in consumer prices in December would be the highest in two years. Despite this, average inflation for the whole of 2013 is expected to be at 2.9 percent or below the 3 percent to 5 percent inflation target set by the Philippine government for the year. In November, inflation rose by 3.3 percent due to the disruption in food supply caused by typhoon Haiyan. Expectations of stable consumer prices prompted Philippine central bank officials to keep overnight borrowing rate at 3.5 percent and lending rate at 5.5 percent.