MANILA, July 5 (Reuters) - Philippine annual inflation was at 3.7% in June, easing from the previous month on a slower increase in utility costs, the statistics agency said on Friday.
The rate, which was below the 3.9% forecast in a Reuters poll, brought the average reading in the six months to June to 3.5%, within the central bank's 2.0%-4.0% target range.
The Philippine central bank said inflation was expected to have settled between the 3.4% to 4.2% range in June.
Core inflation, which excludes volatile food and energy prices, came in at 3.1 in June from a year earlier, unchanged from May.
The central bank has kept its policy rate steady at 6.50% in its past six meetings, and flagged a possible cut of 25 basis points at its next meeting on Aug. 15.
Bangko Sentral ng Pilipinas Governor Eli Remolona has said the monetary board expects price pressures to ease further in the second half when rice import duty is slashed to 15% from 35%. The tariff cuts, due to run through 2028, will be implemented this month. (Reporting by Karen Lema and Mikhail Flores; Editing by Jacqueline Wong)
