MANILA - Falling food prices has resulted in Philippine inflation dropping to its lowest level in two years, officials said, raising the prospect that interest rates will remain on hold.

The National Statistics Office said inflation slowed to an annual 6.4 percent in July, from 6.7 percent in June, at the lower end of the central bank's projected range of 6.3-7.0 percent. It was the lowest rate since June 2004 when it hit 5.4 percent and Bangko Sentral ng Pilipinas governor Amando Tetangco said the easing should allow monetary authorities to keep interest rates on hold.

"The lower inflation rate is consistent with the expected easing of price pressures. While this gives the (central bank) some room for maintaining the current monetary policy stance, there also continues to be upside risks to inflation which need to be closely monitored," he said in a statement.

Investments in services
net P3.01B in 1st 6 mos

The local services sector posted more than P3.01 billion in investments from January to June this year, owing mostly to high figures in trading/retailing enterprises, records of the Department of Trade and Industry Negros Occidental Provincial Office show.

The sector registered only P1.667 billion during the same period in 2005.

Based on investments generated from business name registrations, trading/retailing hit P2.835 billion in first half, compared to only P786.114 million as of end-June the previous year.

Metal, plastic firms get
assistance from JETRO

Local companies continue to receive technical assistance from the Japan External Trade Organization in evaluating their technology levels.

The Department of Science and Technology said in its report late last week that the assistance, under JETRO's Supporting Industries Program, is extended in cooperation with the Philippine Die and Mold Association and Metals Industry Research and Development Center. The DOST said Michio Komatsu, a Japanese plastic moulding expert, came to the Philippines early this year to share his expertise to local plastic companies.

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