The National Statistics Office said the country's inflation rate rose to 5.2 percent in June this year from 5 percent in May, the highest in the past two years.

A year ago, inflation was at 3.6 percent.

The NSO said consumer prices in June rose at their fastest pace in more than two years mostly because of costlier food, fuel, transportation and tuition fees.

The June inflation figure was the highest since May 2009 at 4.3 percent.

In the first six months, inflation stood at 4.7 percent.

Using a 2000 base year, the NSO said inflation rose 4.6 percent to 4.5 percent in May.

The June inflation was within the Bangko Sentral ng Pilipinas projection of 4.6 percent to 5.5 percent.

The NSO said data users could expect two sets of the consumer price index as the new series would be issued simultaneously with the 2000 based series until December 2011.

"Upward adjustments in tuition fees and higher prices of food items particularly chicken, cooking oil, fruits and vegetables raised the overall month-on-month growth of the consumer prices," the NSO said.

It also said that the increased charges for electricity rates and price gains in alcoholic beverages and tobacco and selected construction materials also contributed to the uptrend.

Benjamin Diokno, budget secretary during the Estrada administration, said the June inflation rate of 4.6 percent, using 2000 base year, was well within the range of values being targeted by monetary authorities.

"It should convince BSP to keep policy interest rates unchanged in the meantime. With a tight fiscal policy, a relatively accommodative monetary policy is still needed to provide support to a weak economy," he said.*PNA

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