Philippine inflation climbs to 7.2% in September
Inflation averaged 5.4% across January–September, exceeding the government’s target range of 2% to 4%.
The Philippines recorded headline inflation of 7.2% for September, compared with 6.1% for August, according to figures announced by the Philippine Statistics Authority on October 6. Food prices affected by bad weather, more expensive fuel and peso weakness contributed to the increase.
The acceleration interrupted four consecutive monthly declines. It also brought inflation back to April’s level of 7.2%, a three-year high. The September result was within the Bangko Sentral ng Pilipinas (BSP) projection of 6.4% to 7.4%.
Before the announcement, the BSP had flagged possible increases in vegetable, fish, rice and fruit prices because of weather disruptions. It also identified rising domestic petroleum prices and currency depreciation as sources of inflationary pressure.
Emilio Neri Jr., Bank of the Philippine Islands’ lead economist, had estimated inflation at 6.9%. He attributed disruptions to perishable food supplies and transport to monsoon rain and flooding. He said fuel increases during September’s second half erased the benefit of earlier price cuts.
Neri cautioned that inflation could enter another upswing and exceed 7% in subsequent months. In August, the BSP lifted its key policy rate to 5%, following a third successive increase of 25 basis points.
