Philippine inflation hits fresh peak of 7.8% in October

By Katherine K. Chan, Reporter

HEADLINE INFLATION sizzled to its hottest print so far this year in October as high energy costs spilled over to transport, utilities, and restaurant services, the Philippine Statistics Authority (PSA) said on Thursday.

The headline clip, as measured by the consumer price index (CPI), accelerated to 7.8% from 7.2% in September and 1.7% a year ago.

This was the fastest inflation reading in nearly four years, or since February 2023’s 8.6%.

It marked this year’s peak so far, exceeding the 7.2% recorded in April and September.

It also outpaced the 7.6% median estimate of 22 analysts in a BusinessWorld poll, but was within the Bangko Sentral ng Pilipinas’ (BSP) 7.1%-8.1% forecast.

The headline clip has held above the BSP’s 3% target for eight straight months, bringing the year-to-date average to 5.6%.

National Statistician Claire Dennis S. Mapa said October inflation heated up due to faster inflation in transport, housing and utilities, as well as restaurants and accommodation services.

The Philippines also saw higher import-driven inflation last month as the weak peso versus the dollar drove up the cost of imported goods, the PSA said.

According to Mr. Mapa, the exchange rate pass-through was most evident in energy items, particularly diesel, gasoline, and liquefied petroleum gas, as well as imported rice.

Meanwhile, core inflation, which excludes volatile food and energy prices, picked up to 5.4% in October from the revised 4.8% in September and 2.5% the prior year. This was the fastest core print since 5.9% in September 2023.

Inflation in the National Capital Region also quickened to 5.9% from the revised 5.3% in September and 2.9% a year earlier.

Outside NCR, inflation accelerated to 8.2% from 7.6% the prior month and 1.3% in October 2025.

On the other hand, inflation for the bottom 30% of income households quickened to a nearly four-year high of 9.5% from 9% in September and -0.4% last year. This drove their average inflation to 6.8% as of October.