Philippines Inflation Rate Jumps to 7.2%

The annual inflation rate in the Philippines accelerated to 7.2% in September 2026 from 6.1% in August, overshooting forecasts of 6.6% and matching April’s three-year high. Price growth picked up across most major categories, led by transport inflation, which rose to 14.6% from 13.5%, while housing, water, electricity, gas and other fuels increased to 8.4% from 7.9%, as the country’s heavy reliance on Middle Eastern oil left it particularly exposed to higher energy costs amid the regional conflict. Food and non-alcoholic beverage inflation also accelerated to 6.7% from 4.6%, while inflation for restaurants and accommodation services rose to 7% from 6.8%. Meanwhile, core inflation jumped to 4.7%, the highest since November 2023, above the expected 4.4% and up from 4.1% in August. On a monthly basis, consumer prices rose 1%, the most since April, exceeding expectations and August’s 0.6% growth. The year-to-date average inflation rate now stands at 5.4%.

The annual inflation rate in the Philippines eased to 6.1% in August 2026 from 6.2% in July, but came above expectations of 6%. Food and non-alcoholic beverage inflation slowed to 4.6% from 5.2% in July, mainly due to a decline in the prices of vegetables, tubers, plantains, cooking bananas and pulses. Inflation for housing and utilities also moderated to 7.9% from 8.2%. On the other hand, transport inflation rose to 13.5% from 11.9%, reflecting renewed fuel price increases in the second half of August. Price growth also increased for alcoholic beverages and tobacco (6.3% vs. 6%), furnishings and household equipment (4.1% vs. 3.9%), and health (5% vs. 4.8%). On a monthly basis, consumer prices jumped 0.6%, the most since April, following a 0.1% gain in July and exceeding expectations of a 0.5% rise. Meanwhile, core inflation eased to 4.1% from 4.2%, in line with forecasts. Average inflation stood at 5.2% from January to August, remaining above the government’s 2%-4% target range.

The annual inflation rate in the Philippines eased to 6.2% in July 2026, exceeding expectations of a decline to 6.3% and down from 6.4% in June. Transport inflation decelerated to 11.9% from 12.8%, as fuel price pressures eased. Price growth also moderated for education services (1.9% vs. 4.0%) and restaurants and accommodation services (6.8% vs. 7.0%), while food and non-alcoholic beverage inflation remained unchanged at 5.2%. Meanwhile, inflation accelerated for housing, water, electricity, gas and other fuels (8.2% vs. 8.1%), furnishings and household equipment (3.9% vs. 3.7%), health (4.8% vs. 4.6%), recreation and culture (5.3% vs. 5.2%), and personal care and miscellaneous goods and services (3.8% vs. 3.7%). On a monthly basis, the CPI increased 0.1%, following a 0.2% decline in June. Annual core inflation slowed to 4.2% from 4.4% in June. Average inflation stood at 5% from January to July, remaining above the government’s 2%-4% target range.