Philippine cbank sees '08 inflation at 5.5-6.5 pct

MANILA, May 11 (Reuters) - The Philippine central bank has forecast that average inflation may reach 5.5-6.5 percent this year, up from its target range of 3-5 percent, central bank sources said.

The forecast was contained in a report given to the central bank's Monetary Board on Thursday, the sources said.

However, the inflation-targeting central bank sees the inflation rate returning to the programmed path of 2.5-4.5 percent in 2009.

Skyrocketing food and fuel prices pushed inflation to a near three-year high of an annual 8.3 percent in April, bringing the four-month inflation average to 6.2 percent.

This has raised expectations that the central bank may raise interest rates at its next policy meeting in June despite the need to pump-prime the economy given a looming U.S.-led global slowdown.

(Reporting by Raju Gopalakrishnan, editing by Jacqueline Wong)