Philippine central bank says inflation likely peaked in January

MANILA (Reuters) – Philippine inflation “most likely” peaked in January but the central bank cannot rule out another surprise supply shock, its governor said on Wednesday.

January inflation, which hit a fresh 14-year high at 8.7%, was higher than the top end of the central bank’s forecast, Governor Felipe Medalla told reporters.

The central bank on Monday reiterated its readiness to adjust its monetary policy to anchor inflation expectations.

Its first rate-setting meeting is scheduled for Feb. 16, with economists now flagging a higher chance that the central bank will deliver a larger interest rate hike to tame prices.

(Reporting by Neil Jerome Morales; Editing by Ed Davies)