Philippine inflation accelerated to a five-month high of 7.2% in September from 6.1% in August, driven mainly by higher food, housing and transport costs, the Philippine Statistics Authority (PSA) said Tuesday.
The latest reading brought average inflation for the January-September period to 5.4%, compared with 1.7% in September 2025.
Food and non-alcoholic beverages recorded the sharpest increase among the major categories, with inflation accelerating to 6.7% from 4.6% in August. Housing, water, electricity, gas and other fuels rose 8.4% from 7.9%, while transport inflation increased to 14.6% from 13.5%.
Food and non-alcoholic beverages contributed 35.8% of the overall inflation rate, equivalent to 2.6 percentage points. Housing, water, electricity, gas and other fuels accounted for another 24%, or 1.7 percentage points, while transport contributed 18.3%, or 1.3 percentage points.
National food inflation also accelerated to 6.8% in September from 4.6% in August and 0.8% a year earlier. Food alone accounted for 34.4% of overall inflation, or 2.5 percentage points.
Core inflation, which excludes selected food and energy items, rose to 4.7% from 4.1% in August and 2.6% in September 2025.
Inflation in the National Capital Region increased to 5.4% from 4.1% in August, while inflation outside the capital accelerated to 7.6% from 6.6%.
Department of Economy, Planning and Development Secretary Arsenio Balisacan attributed the latest increase mainly to food supply disruptions caused by adverse weather and higher global oil prices.
“September’s inflation rise was driven mainly by disruptions in food supply caused by adverse weather and higher global oil prices. These are significant supply-side pressures, but they are being met with targeted interventions to mitigate the impact on households,” Balisacan said.
The government has suspended excise taxes on LPG and kerosene, expanded the secondary price cap to the Visayas and Mindanao grids and is pursuing toll waivers on major highways for agricultural hauliers to reduce logistics costs.
It is also expanding palay storage capacity in Tarlac and rolling out the country’s first commercially approved African Swine Fever vaccine to help stabilise pork supplies ahead of the holiday season.
Balisacan said the government was also preparing for a possible intensification of El Niño by procuring agricultural inputs, expanding food and cold storage facilities, conducting cloud-seeding operations in drought-affected areas and providing targeted assistance to vulnerable communities.
“The best response to supply-driven inflation is to strengthen supply itself. That is why we are expanding food production and storage, improving logistics, and building resilience against climate shocks,” he said.
“These investments address the root causes of price pressures and will deliver a more stable and affordable food supply in the years ahead,” Balisacan added.
Manila Standard
