it’s piece of an article that i can’t understand. someone please help me and explain this to me? why did the inflation start and how?
“Bangko Sentral ng Pilipinas kept its benchmark interest rate unchanged at 4 percent last week for a second straight meeting after slashing it by 2 percentage points from December to July. Inflationary risks have increased since August as the economy picks up, Deputy Governor Diwa Guinigundo said Oct. 1. “Headline inflation is starting to accelerate” and will rise sharply in the coming months, said Frederic Neumann, an economist at HSBC Holdings Plc in Hong Kong. “We expect the central bank to start preparing the ground for rate hikes early next year.” The peso rose 0.4 percent to 46.53 per dollar as of 9:48 a.m. in Manila, its highest level since Jan. 7, according to Tullett Prebon Plc. The Philippine economy expanded 1.5 percent in the second quarter from a year earlier, accelerating from a decade low as record-low borrowing costs and government stimulus helped Asian nations recover from the global recession.Bangko Sentral has “an exit strategy in place” and will “shift gradually to a different monetary stance” when it sees signs of firmer growth, Guinigundo said last week.”