Philippine inflation eases for 2nd straight month

MANILA, Philippines - Inflation in the Philippines eased for the second straight month in October, retreating from a 17-year high as commodity prices continued to fall, the government said Wednesday.

The consumer price index rose 11.2 percent from a year earlier after rising 11.9 percent in September and 12.5 percent in August, the National Statistics Office said.

The August inflation, the highest since December 1991, when it was 13.2 percent, was largely driven by higher fuel and food prices in the first half of the year. The weaker peso also added to the price pressure.

The central bank said Wednesday that easing inflation would give it more leeway to cut interest rates to help financial markets cope with the ongoing turmoil in the global financial system.

It said earlier this week that the softening of commodity prices, especially oil products, would allow inflation to continue falling.

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