MANILA, Philippines (Xinhua) - The Philippine central bank said today that it expects the country's inflation rate within target in the medium term.
The Bangko Sentral ng Pilipinas (BSP) noted that the inter-agency Development Budget Coordination Committee (DBCC) has decided to keep the current inflation target at 3.0 percent 1.0 percentage point for 2015-2016 and approved the inflation target of 3.0 percent 1.0 percentage point for 2017-2018.
The government's inflation target is defined in terms of the average year-on-year change in the consumer price index (CPI) over the calendar year.
"The current 3.0 percent 1.0 percentage point fixed annual target for 2015-2016 set by the government remains well-attuned to the dynamics of the Philippine economy. In particular, this target is consistent with the country's economic growth objective of 7.0- 8.0 percent for both years," the central bank said.
It added that the approved medium-term inflation target for 2017-2018 was based on the recent assessment of current and prospective inflation trends which indicates a manageable outlook over the medium term.
"Inflation has been within target in the last six years and is expected to remain so over the medium term," BSP said.
The central bank vowed to continue to monitor price developments to ensure that the monetary stance remains appropriate in keeping inflation within target, "thus safeguarding price stability."