RP inflation at 7.86%

RP inflation at 7.86%

MANILA (Reuters): Philippine inflation is forecast to have edged higher in March to 7.86 percent, compared to 7.4 percent in February and 4.8 percent last year, a Reuters poll of seven analysts showed.

Inflation data is expected to be released today.

The Philippine economy was still feeling the pinch from the peso's sharp devaluation despite more stable and lower interest rates that prevailed in March, economists said.

The annual inflation forecasts also take into account higher food prices as a result of the El Nino weather pattern.

"Producers are still imputing higher costs due to the depreciation of the peso and higher interest rates. There is a lagged effect," said Lito Dalit, economist at United Coconut Planters Bank.