Philippines Inflation Rate Surges to 7.8%

The annual inflation rate in the Philippines accelerated to 7.8% in October 2026 from 7.2% in September, exceeding expectations of 7.6% and marking the highest reading since February 2023. Transport inflation surged to 20.1% from 14.6%, while inflation for housing, water, electricity, gas and other fuels increased to 9.3% from 8.4%, as the prolonged Middle East conflict drove up costs in a country heavily reliant on energy supplies from the region. Price growth also accelerated for restaurants and accommodation services (7.7% vs 7%), health (5.9% vs 5.6%), and furnishings and household equipment (5% vs 4.7%). In contrast, food and non-alcoholic beverage inflation eased to 6.1% from 6.7%. On a monthly basis, consumer prices rose 0.7%, following a 1% increase in September. Core inflation also accelerated to 5.4%, its highest level since September 2023, from an upwardly revised 4.8% in September, exceeding market expectations of 4.8%.

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.