Philippine annual inflation eases to 7.6% in March

MANILA (Reuters) – Philippine annual inflation eased for a second straight month in March but still remained above target, the statistics agency said on Wednesday, reflecting slower increases in food and transport costs.

The consumer price index rose 7.6% in March, below the 8.0% forecast in a Reuters poll, and marked the slowest pace of price increase in six months.

But core inflation, which strips out volatile food and fuel items, accelerated to 8.0% in March from Februarys 7.8%, indicating price pressures remain.

The Philippine central bank, which projected inflation to be between 7.4% to 8.2% in March, raised its benchmark interest rate by 25 basis points to 6.25% last month, to bring inflation back to its 2%-4% target this year.

The central bank said its future policy moves would be would be data-dependent.

(Reporting by Neil Jerome Morales and Enrico dela Cruz; Editing by Ed Davies)