MANILA, Philippines – Inflation sped up further for the second straight month as higher fuel, electricity, and transport prices squeezed households already struggling with the rising cost of living.

Inflation soared to 7.8% in October from 7.2% in September, the Philippine Statistics Authority said on Thursday, November 5. It stood at just 1.7% in October 2025.

The latest inflation figure brought average inflation from January to October to 5.6%, well above the government’s target range of 2% to 4%.

Ahead of the release, the Bangko Sentral ng Pilipinas (BSP) had projected October inflation to settle between 7.1% and 8.1%, citing higher domestic fuel prices, electricity rates, and transport fares.

October was also expected to capture more of the impact of transport fare increases implemented in late September, which were barely reflected in September’s inflation figures.

Filipinos are already feeling financially stretched. An October study by Organic Intelligence found that 45% of urban Filipinos said inflation had drained their motivation to get ahead, while 42% had borrowed money for essentials such as food and transportation.

The persistent price pressures have also pushed the BSP to tighten monetary policy. The central bank hiked its benchmark interest rate by a “jumbo” 50 basis points to 5.50%, its fourth consecutive increase in 2026.

BSP Governor Eli Remolona Jr. warned that inflation could accelerate further in the coming months due to oil prices, transport fares, and the potential effects of El Niño on food production.

The BSP forecasts inflation to average 6.1% in 2026 and 6% in 2027. – Rappler.com

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