Philippines inflation stays above target in April

MANILA, May 2 (Reuters): Philippine annual inflation likely moved further away from the central bank's 2-4 per cent comfort range in April due to higher oil, electricity and rice prices, a Reuters poll showed.

The median forecast in a poll of 10 institutions was for the consumer price index (CPI) to rise 4.5 per cent in April from a year earlier, above the 4.3 per cent climb in March, but within the central bank's 3.9-4.7 per cent forecast for the month.

Some economists expect inflation to peak at over 6.0 per cent in the third quarter, driven by higher taxes imposed on some commodities starting this year, building the case for an interest rate increase this year.

Official annual inflation data would be released on May 4, ahead of the central bank's rate-setting meeting on May 10, the same day the government releases first-quarter GDP data.

The Philippine central bank said last month it was satisfied with its current policy actions despite a weaker currency, rising inflation and falling stocks, and future moves will remain driven by data.

It kept interest rates steady at its last policy meeting in March even as it recognised that inflation expectations have started to rise.

Bangko Sentral ng Pilipinas Governor Nestor Espenilla has said the economy was strong enough to "absorb some policy tightening if warranted".