NEWSFLASH

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APRIL INFLATION RATE LOWER THAN EXPECTED

Manila, May 7, 1998 - Government officials and leaders of industry and finance welcomed the announcement that the inflation rate for April was only 7.9%, much lower than expected.

"The April inflation report continues to be welcome news to us and shows that we are largely successful in maintaining price stability even in the face of El Nino and the effects of the Asian currency crisis," Socio Economic Planning Secretary Cielito Habito said in a statement.

Raul Concepcion, chairman of the Federation of Philippine Industries, said keeping the inflation rate at single-digit levels for the entire 1998 will be a major breakthrough.

"The thing to do is to keep the fiscal deficit at manageable levels. That would keep the inflation rate down," Concepcion said.

Bangko Sentral ng Pilipinas Governor Gabriel Singson noted that overall price developments remain encouraging. "Although the economy has gone through a traumatic period of peso depreciation and higher interest rates as a consequence of a regional crisis, these have not translated to significantly higher inflation for the economy as many had feared."

The National Statistics Office data showed that the Autonomous Region of Muslim Mindanao recorded the highest inflation rate at 13.3% while Central Visayas registered the lowest rate att only 6%. In Metro Manila, inflation went up to 8.8% in April from 7.6% in March.

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