Early impetus came from food and fuel, but inflation pressures have since broadened. Goods inflation has risen sharply over the past few months, reflecting high global inflation, rising production and distribution costs, and a weaker rand exchange rate. Services price inflation still remains moderate, but has about doubled in recent months and poses a risk to the inflation outlook.
Real GDP growth averaged five percent since 1999 and there are indications that growth is getting more broad-based. This gives us a level of confidence that we can address challenges that lie ahead. In this connection, I wish to share the report released yesterday by the IMF mission to the Philippines.