Page last updated at 06:11 GMT, Tuesday, 7 July 2009 07:11 UK

Philippine inflation falls again

Sacks of rice being unloaded in Manila
Inflation is set to fall further

Philippine inflation fell to 1.5% in June - its lowest rate in 22 years - after energy prices fell, according to official figures.

Last month's inflation was the lowest rate since April 1987 and came after May's reading of 3.3%.

The latest data is in sharp contrast to the inflation rate seen in June last year, when inflation hit 11.4%.

Since then commodity prices have slumped. The government says there is scope to cut interest rates further.

A year ago a price of crude oil hit a record of more than $140 a barrel, but now it is trading at about $65.

"Current assessment show risks to inflation remain tilted towards the downside," said Central Bank governor Amando Tetango, adding that the latest data was within expected forecasts.

The central bank predicts that inflation will hit its lowest rate, of about 1%, in the third quarter of the year, before rising.

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