Inflation in May seen at 2.2 to 3.1 pct

MANILA, Philippines (Xinhua)  - Inflation could have settled between 2.2 percent and 3.1 percent in May, the central bank said today.

Central Bank Governor Amando Tetangco Jr. attributed this to higher oil and food prices and increased tuition. But this will be offset by lower utility rates and peso appreciation.

The actual inflation data for May will be released on June 5.

Inflation cooled to a 13-month low 2.6 percent last April, bringing the year-to-date average to 3 percent. This falls at the low-end of the central bank's target range of 3 to 5 percent for 2012.

This, Tetangco said, "reflects manageable inflation pressures and well-anchored inflation expectations."

Despite this, the central bank chief said the agency will continue to monitor developments here and abroad.

"We will make adjustments as necessary to ensure inflation expectations remain well anchored," Tetangco said.