Philippine inflation seen below 1 pct in Jun-c.bank source

Published: 04 May 2009 00:04:31 PST

MANILA, May 4 - Philippine inflation will fall below 1 percent in June mainly due to a high base in the same period of 2008, a senior central bank official said on Monday.

But the average inflation rate this year would still come in around 3.42 percent, the official told reporters.

"Inflation will fall below 1 percent in June because of base effects," the official, who asked not to be identified because of the sensitivity of the subject, said.

Last year commodities prices rose to record levels but have since fallen sharply, so annual comparisons in monthly consumer price data are having a dramatic affect on headline inflation.