NEWSFLASH

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INFLATION LOWER THAN EXPECTED, STOCKS RISE

Manila, Nov. 6, 1997 - A very pleasantly surprised President Ramos announced at this regular Malacanang press conference that the inflation rate for October was 5.7%, lower than the predictions based on expectations that the peso's depreciation would cause steep increases in the prices of food and fuel.

The low inflation rate is below the central bank's own forecast of 6.8% and the International Monetary Fund's target of 7.5%.

Bangko Sentral ng Pilipinas (central bank) Governor Gabriel Singson said the average inflation rate for the first ten months of 1997 was 4.8%. Economists noted that the relatively tame rise in food prices in October reflects the food industry's reluctance to pass along to consumers increases related to peso rate fluctuations.

The positive date boosted the stock market, with the Philippine Stock Exchange index gaining 19.53 points to close at 1,900.67. The volume of trading was low, barely reaching P1 billion.

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