Philippine inflation rate is seen to settle within 3 to 5 percent range this year following the drop in inflation rate in January, a senior economic manager said Friday.
Socio-economic Planning Secretary Cayetano W. Paderanga, Jr. said that this range is within the Philippine Development Plan 2011-2016, using the 2000-based Consumer Price Index (CPI) series.
But Paderanga said that despite a benign inflation outlook, weather disturbance, wage increase and rising oil prices may cause inflationary pressures.
"While a weak external demand is being anticipated in 2012, oil prices are still expected to be higher than in 2011. This is due to geopolitical uncertainties in the Middle East, particularly caused by Iran's threat to close the Strait of Hormuz in response to a possible European Union oil embargo," Paderanga said in a statement.
He added that heavy rains brought by La Nina may also boost food prices./.