The Philippine government on Sunday welcomed the lower Philippine inflation forecast by Singapore- based DBS Bank Ltd., calling it an "affirmation of the prudent management" of the country's economy.

Presidential Spokesman Edwin Lacierda said in an interview with state-run radio station Radyo ng Bayan that inflation in the country has remained under control and within the government's target range even when oil prices were climbing, due to good fiscal management.

"During the past few months, oil prices went up but the prices of our basic commodities did not significantly rise because our inflation rate was managed well by our economic managers. So this is certainly good news for us and an affirmation of the prudent management of our economic managers and of the Aquino administration," Lacierda said.

The DBS bank revised down forecast of Philippine inflation to 3. 5 percent from 4 percent this year and 4.3 percent from 4.8 percent next year.

"That's going be good for us.. Our current inflation is within the range posted by NEDA (National Economic and Development Authority) or Bangko Sentral," he said.

The government is eyeing a 3 to 5 percent inflation target this year.