RP projects lower inflation

RP projects lower inflation

MANILA: The Philippine government expects consumer prices to rise at a slower pace than projected this year, while upgrading the export target, Finance Secretary Jose Camacho said Tuesday.

Manila now expects inflation to average 4.5-5.5 percent, compared to the previous target of 5.0-6.0 percent, he told reporters.

Export revenues should rise by four percent, instead of being flat, he added.

The government maintained its gross domestic product (GDP) growth target of 4.0-4.5 percent and the national budget deficit target of 130 billion pesos (US$2.57 billion).

"There is no change in the GDP (because) we want to be conservative, (though) we are more confident now because of the first quarter (GDP) results," Camacho said.

GDP grew 3.8 percent in the three months to March, but the budget deficit in the four months to April soared to 82.96 billion pesos, more than the first half target of 78.26 billion pesos. -- AFP