philippine inflation rate january 2012

World Economic outlook - philippines inflation rate january 2012 : Philippine inflation slowed to below 4 percent for the first time in more than a year, bolstering hopes the central bank will deliver a second quarterpoint cut at its March 1 meeting to shield the economy from the global downturn.

Annual headline inflation in January was 3.9 percent, slowing from the previous month's rate of 4.2 percent, based on a new series using 2006 prices, and was slightly below the 4.0 percent forecast in a Reuters poll.

The central bank had forecast January inflation to be between 3.6 percent and 4.5 percent. Tetangco also said the central bank was watching developments overseas and locally, particularly on how events may impact inflation.

The Bangko Sentral ng Pilipinas cut its key policy rate by 25 basis points to 4.25 percent in January, the first cut in 2 1/2 years, and will review rates again in March. An uncertain outlook for the global economy coupled with sluggish exports will strengthen the case for a another rate cut in March, especially with inflation slowing, analysts said.

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