Headline inflation in the Philippines quickened to 1.7 percent in September, the fastest pace since March, as rising transport, food, and restaurant costs drove up consumer prices, the Philippine Statistics Authority (PSA) reported on Tuesday.
The latest reading was up from 1.5 percent in August, pushing the year-to-date average to 1.7 percent. Despite the uptick, inflation remains below the Bangko Sentral ng Pilipinas’ (BSP) official target range of 2 to 4 percent, leaving the central bank with monetary policy space should further easing be required.
The BSP’s next policy meeting is scheduled later this week.
Food inflation rose 0.8 percent in September, driven largely by a surge in the cost of vegetables, tubers, plantains, cooking bananas, and pulses, which spiked by 19.4 percent year-on-year—up sharply from 10.0 percent in August. However, slower price increases were noted for meat, fish and other seafood, milk, dairy products, eggs, and fruits and nuts, tempering the overall food inflation trend.
Core inflation, which excludes volatile food and energy items, eased slightly to 2.6 percent in September from 2.7 percent the previous month, signaling continued stability in underlying price pressures.
Meanwhile, inflation for the bottom 30 percent income households registered a slower annual decline of 0.2 percent in September, compared to a 0.6 percent decrease in August.
The average inflation rate for this income segment from January to September now stands at 0.3 percent, down sharply from 2.5 percent recorded in the same period last year.
Food inflation for low-income households also showed a moderated drop, with a 2.4 percent decline in September from 2.8 percent in August.
While September’s inflation uptick reflects specific commodity pressures, analysts note that the overall inflation environment remains manageable, giving the BSP more flexibility as it weighs its next monetary policy move.
