PH inflation surges to near four-year high of 7.8%
Inflation in the Philippines accelerated to 7.8 percent in October, its highest level in nearly four years, as faster increases in transport and utility costs further weakened consumers’ purchasing power.
The latest figure from the Philippine Statistics Authority (PSA) was higher than the 7.2 percent recorded in September and landed at the upper end of the Bangko Sentral ng Pilipinas’ (BSP) forecast range of 7.1 to 8.1 percent.
National Statistician Claire Dennis Mapa said rising prices mean consumers can purchase fewer goods with the same amount of money, with poorer households bearing the brunt of inflation.
Transport costs surged 20.1 percent in October, driven by higher gasoline and diesel prices, which recorded inflation rates of 51.1 percent and 62.4 percent, respectively.
Fares for other passenger transport services by road, including buses and jeepneys, also increased.
Housing, water, electricity, gas, and other fuels recorded a 9.3 percent increase, with electricity prices rising 14.5 percent and liquefied petroleum gas (LPG) prices climbing 43.4 percent.
Restaurant and accommodation services also contributed to the acceleration, with prices at restaurants, cafes and similar establishments increasing 7.6 percent.
Mapa said the impact of higher transport costs could continue to be felt in the coming months, as prices were relatively lower during the same period last year.
The PSA also reported that rice prices increased 20.7 percent in October, the highest rate since the 20.9 percent recorded in July 2024.
Core inflation, which excludes selected volatile food and energy items, likewise accelerated to 5.4 percent from 4.8 percent in September.
Mapa attributed some of the pressure on agricultural prices to El Niño, which disrupted supply and contributed to higher food costs.
In response, the Department of Economy, Planning and Development (DEPDev) said the government would continue implementing targeted interventions to support producers, improve supply and provide relief to vulnerable sectors.
DEPDev Secretary Arsenio Balisacan said measures would focus on improving agricultural productivity and logistics, as well as addressing constraints in food and energy supply.
Last month, the government began rolling out three billion pesos in fuel subsidies for around 300,000 beneficiaries, including farmers, fisherfolk, and agricultural delivery truck drivers.
In the energy sector, the department said the Energy Department was taking steps to ensure adequate power supply amid El Niño conditions, including increasing generation capacity and accelerating the deployment of energy storage systems.
Meanwhile, the BSP said it would remain vigilant and assess the impact of developments in the Middle East and continuing El Niño conditions on the country’s inflation and growth outlook.
The central bank has raised borrowing costs four times this year, including a 50-basis-point hike in October, as it seeks to rein in inflation. – ANC, The World Tonight, November 5, 2026