Philippines' inflation rises to two-year high in June

MANILA, July 5 (Xinhua) -- The Philippines' annual headline inflation rose to a two-year high of 5.2 percent in June, the National Statistics Office said Tuesday.

This is the fastest inflation rate recorded since it peaked at 5.6 percent in April 2009.

The NSO attributed this to higher prices of alcoholic beverages and tobacco; clothing and footwear; housing, water, electricity, gas and other fuels; transport; recreation and culture; education; and restaurants and miscellaneous goods and services index.

The actual June inflation is within the 4.6 to 5.5 percent range forecast by the central bank.

"The June inflation rate is well within the range of values being targeted by monetary authorities. It should convince central bank to keep policy interest rates unchanged in the meantime," said Benjamin Diokno, economics professor at the University of the Philippines.