Inflation quickens to 7.2 percent in September as food, transport costs surge

MANILA — Philippine headline inflation surged to 7.2 percent in September, driven by soaring food and transport costs, the Philippine Statistics Authority said on Tuesday.

The September clip was a sharp increase from 6.1 percent in August, though within the Bangko Sentral ng Pilipinas’ forecast range of 6.4 to 7.4 percent. 

Average inflation for the first nine months of the year reached 5.4 percent, compared to 1.7 percent in September 2025.

“The uptrend in overall inflation was primarily influenced by the faster annual increment in heavily weighted food and non-alcoholic beverages,” the statistics authority said, noting food inflation climbed to 6.8 percent from 4.6 percent.

Surging prices for key staples hit consumers hard, led by a 20.3 percent jump in rice costs and a 10.7 percent surge in vegetables. Transport costs also accelerated to 14.6 percent, while housing and utility prices rose 8.4 percent.

Core inflation, which excludes food and energy items that are prone to wild swings, picked up to 4.7 percent from 4.1 percent in August.

Price pressures were felt most acutely outside the capital region, where inflation accelerated to 7.6 percent, peaking at 9.7 percent in the Bangsamoro autonomous region. In Metro Manila, inflation stood at 5.4 percent.

The data comes after the Bangko Sentral ng Pilipinas raised key interest rates by 25 basis points at its last meeting, warning that ongoing Middle East conflict threatens to keep prices elevated.

PSA Undersecretary and National Statistician Claire Dennis Mapa said the September inflation rate does not yet take into account the fare hikes that were approved in late September.