MANILA, Philippines ? The rate of increase of consumer prices in August still reached levels not seen in 22 years, remaining on track to hit official targets for the year, according to the National Statistics Office.

The NSO said that inflation in August barely rose at 0.1 percent from the same month last year.

The annual rise in consumer prices for the month was slower than the 0.2-percent increase seen in July.

The NSO said that the rise in prices of most commodities except food, beverages and tobacco, slowed during the month.

Excluding volatile food and energy items, core inflation in August stood at 2.9 percent, down from 3.6 percent in July, it added.

?The August inflation figure of 0.1 percent is within our forecast range,? Bangko Sentral ng Pilipinas Governor Amando Tetangco told Dow Jones Newswires.

Target range

He said the BSP expected inflation for the year to hit the lower end of its target range of 2.5 percent to 4.5 percent.

For the first eight months of the year, inflation was 3.7 percent, the statistics office said.

The last time monthly inflation hit the same level was in 1987, when the Philippine economy suffered from a series of failed military coups against then President Corazon Aquino.

Inflation slowed in the Philippines this year as the economy reeled from the global financial crisis. Economic growth in the first half was just 1.0 percent year-on-year, down from 3.8 percent during the same period in 2008.

However, the Philippines is expected to withstand the economic crunch better than many other countries in the region.

Of the six groups in the consumer price index, only the heavily weighted food, beverage and tobacco (FBT) group showed a faster rate of increase in August at 1.8 percent from 1.6 percent in July.

Strongest downward pressure

The strongest downward pressure came from fuel, light and water (FLW), prices of which decreased faster at -5.4 percent in August from -4.8 percent in July.

The decrease in prices of services also gained momentum at -4.2 percent from
-3.9 percent.

Augusto B. Santos, acting director general of the National Economic and Development Authority, said inflation had been slowing down for the sixth consecutive month since February.

Inflation last month brought the average for the eight months to August at 3.7 percent.

The government aims to nudge average inflation for 2009 to 2.5 percent.

?Although commodity prices plunged at the onset of the global economic crisis (due to falling oil prices), signs of weak global recovery lifted commodity prices in August 2009 compared to the previous month,? Santos said. With a report from Agence France-Presse