Business · Economy · 16 hrs ago
Philippine inflation reaches 7.8%, highest in 44 months
Inflation in the Philippines reached 7.8% in October, its highest level in 44 months.
Higher petrol prices linked to the Middle East conflict were a major driver in the oil-import-dependent country.
Transport costs rose 20% from September, adding to costs for commuters and for moving food and generating power.
Inflation is far above the government's 2% to 4% target; the rate for the year so far is 5.6%.
The central bank raised its key lending rate to 5.5% two weeks before the figures were released, citing rising price pressures and risks.
A weaker peso has added to the pressure, after it fell to 64 per US dollar last week.
Officials warn that energy prices and El Niño could add to inflation, with the dry spell beginning to affect food supplies.
Philippine inflation reached 7.8 percent in October, its highest level in 44 months.
The government said soaring petrol prices linked to the Middle East conflict drove the increase.
Transport costs rose 20 percent from September, chief statistician Dennis Mapa said.
The October rate exceeded analysts’ forecast of 7.6 percent and the government’s 2 to 4 percent target.
Inflation for the year stood at 5.6 percent.
- Who
- The Philippines and its consumers. Chief statistician Dennis Mapa reported the figures.
- What
- Inflation reached 7.8 percent in October, a 44-month high.
- When
- October 2026; the government reported the figures on November 5.
- Where
- The Philippines.
- Why
- Soaring petrol prices linked to the Middle East conflict drove up transport costs. A weaker peso also raised the cost of imports.
This story does not have two clearly opposing sides.
The central bank raised its key lending rate by 50 basis points to 5.5 percent.
Philippine inflation reached 7.8 percent.
The government reported the October inflation rate.
- October inflation
- 7.8 percent
- Inflation high
- Highest in 44 months
- Transport costs
- Rose 20 percent from September
- Year-to-date inflation
- 5.6 percent
- Government inflation target
- 2 to 4 percent
What people are saying
The main reason for the rise in inflation in October compared to September is the 20 percent rise in transport costs.
There are risks that we face ahead,
don't panic