RP told to fight inflation

RP told to fight inflation

MANILA (AFP): Michel Camdessus, the managing director of the
International Monetary Fund (IMF) urged the Philippines yesterday
to take bold steps to curb inflation which he warned threatened
long-term economic growth.

"If the impressive economic gains achieved thus far are not to
prove transitory, it is important that the Philippines move
quickly to the next phase of its economic transformation," he
told a news conference.

The Philippine economy grew by 5.07 percent in the first half,
but the inflation rate surged to 9.9 percent in August before
tapering down to 8.6 percent last month.

Manila earlier this year obtained a US$684 million IMF loan
whose release is conditional on its meeting key targets in an
economic program agreed at by the lender and the borrower.

"Inflation is a cancer that if not tackled at an early stage,
could risk undermining what has already been achieved, and if
left unchecked could derail the whole program," Camdessus warned.

"The slaying of this dragon we call inflation is an absolute
necessity."