UPDATE 3-Philippines July CPI rises but door open to further easing

* Inflation picks up in July, fastest in six months
* Imports, exports posted slower declines in June
* C.bank says ready to deploy policy tools to support
economy

(Adds downward revision of Q1 GDP)
MANILA, Aug 5 (Reuters) - Philippine inflation accelerated
for a second straight month in July as the easing of coronavirus
lockdowns revived consumer demand, but price pressures remained
subdued, giving the central bank room for further monetary
policy easing if needed.
July's consumer price index rose 2.7% from a year earlier
PHCPI=ECI , the fastest in six months, driven by increases in
transport, utility, alcoholic beverages and tobacco prices, the
Philippine Statistics Authority said on Wednesday.
It was near the upper end of the central bank's 2.2% to 3.0%
forecast range, and faster than the median 2.5% estimate in a
Reuters' poll, which matched June's rate.
Core inflation, excluding volatile food and fuel prices, was
3.3%, versus 3.0% in June PHCPXY=ECI .
Tame inflation has allowed the central bank to cut interest
rates PHCBIR=ECI by a total of 175 basis points this year to a
record-low of 2.25% to help support a battered economy.
But a return to lockdown in and around Manila amid a spike in
COVID-19 cases has dashed hopes for a swifter recovery.
Bangko Sentral ng Pilipinas (BSP) will consider inflation
and second-quarter GDP data at its Aug. 20 policy meeting.
"The BSP remains ready to deploy all available measures in
its toolkit in fulfilment of its policy mandate as it continues
to assess the impact of the global health crisis on the domestic
economy," central bank governor Benjamin Diokno told reporters
Data on Thursday is likely to show a 9.0% GDP contraction in
April-June, a Reuters poll showed, after a downwardly revised
0.7% drop in the first quarter from -0.2%.
Second-quarter farm output, which usually accounts for less
than 10% of economic output, grew at an annual pace of 0.5%,
while trade data for June showed slower contractions in export
and imports. "Any bigger contraction in Q2 GDP data may lead to further
monetary easing measures especially by way of a cut in banks'
RRR (reserve requirement ratio)," said Michael Ricafort,
economist at Rizal Commercial Banking Corp.