*  *  *  Ladies and gentlemen of the Foreign Correspondents Association of the Philippines, special guests, good morning. Thank you for inviting me again to speak before you today. The last time I was here in February, I discussed with you the challenges that the Philippine economy would be facing this year.
First, core inflation rates in the United States are as low today as they have been in forty years, and they have been trending downward. For example, the twelve-month inflation rate as measured by the consumer price index, current-methods basis and excluding food and energy prices, was 2.7 percent at the recession trough in November 2001.