Manila - Inflation in the Philippines eased to a year-on-year rate of 11.2 per cent in October amid a slowdown in increases in food prices, the government said Wednesday.

The October index declined from an adjusted rate of 11.8 per cent in September, but up from 2.7 per cent in the same month in 2007, according to the National Statistics Office (NSO).

The NSO said the decline was "brought about by the continued slowing down in the annual price increases of the heavily weighted food, beverages and tobacco and services items."

The food index alone decelerated to 15.6 per cent in October from 17 per cent in September.

Manila - Thirty-nine people were killed and at least six are missing when a motorized wooden boat sank in the eastern Philippines on Tuesday, police said.

According to the boat's manifest, there were 119 people aboard when the accident occurred off Dimasalang town in Masbate province, 420 kilometres south of Manila.

It was not yet clear if the crew members were already included in the manifest, said Senior Superintendent Reuben Sindac, Masbate provincial police commander.

Sindac said local fishermen and police rescued 76 survivors from the waters after the accident.

Manila - Four people were killed and more than 40 are missing when a motorized wooden boat sank in the eastern Philippines on Tuesday, police said.

The boat was believed to be carrying some 100 people when the accident occurred off Dimasalang town in Masbate province, 420 kilometres south of Manila.

Fifty-four survivors were rescued from the waters, said Senior Superintendent Reuben Sindac, Masbate provincial police commander.

Sindac said the boat was struck by a sudden gust of wind shortly after leaving the port of Dimasalang, causing it to capsize.

"This was just five kilometres from the shoreline," he said.

Police and local fishermen were helping search for those still missing from the accident.

Manila - The Philippine government on Tuesday expressed confidence that its relationship with the United States would remain strong whoever wins the presidential race.

Manila - Two communist rebels were killed in a clash with government troops in an eastern Philippine province, an army spokesman said Tuesday.

Colonel Romeo Brawner said six other guerrillas were injured when soldiers raided their encampment in Las Navas town in Northern Samar province, 510 kilometres south-east of Manila.

Brawner said government troops seized the rebel camp which consisted of 30 bunkers and four thatched huts.

Manila - The Asian Development Bank (ADB) said Tuesday it has approved a 70-million-dollar loan for a new project to improve the lives and incomes of poor farmers in the conflict-wracked southern Philippines.

The Manila-based bank said the Agrarian Reform Communities Project II will allocate 135.2 million dollars for rural infrastructure projects and 25.2 million dollars for agriculture and enterprise development.