Inflation in the Philippines accelerated to 7.2% year-on-year in September, up from 6.1% in August, the statistics agency said on Tuesday — a reading that overshot economist expectations and landed near the top of the central bank's own forecast range.
A Reuters poll of economists had expected 6.6%, making the 7.2% figure a notable upside surprise. It did fall within the central bank's forecast band of 6.4% to 7.4% for the month.
What drove the rise
The statistics agency said the acceleration was driven by higher prices of rice, electricity and other fuels, and transport. Annual core inflation, which strips out volatile food and energy prices, stood at 4.7% in September.
Forecast met, almost
The official reading follows a late-September warning from the central bank that inflation could quicken to as high as 7.4% as storms and a weak peso bite — and the actual 7.2% came in just under that upper bound. It is the first official reading after weeks of mounting price pressure linked to food supply disruptions in the country.
The figures will now feed into the central bank's policy deliberations as it weighs how to respond to price growth running well above comfort levels.
Sources:
Reuters: Philippine annual inflation at 7.2% in September
A Reuters poll of economists had expected 6.6%, making the 7.2% figure a notable upside surprise. It did fall within the central bank's forecast band of 6.4% to 7.4% for the month.
What drove the rise
The statistics agency said the acceleration was driven by higher prices of rice, electricity and other fuels, and transport. Annual core inflation, which strips out volatile food and energy prices, stood at 4.7% in September.
Forecast met, almost
The official reading follows a late-September warning from the central bank that inflation could quicken to as high as 7.4% as storms and a weak peso bite — and the actual 7.2% came in just under that upper bound. It is the first official reading after weeks of mounting price pressure linked to food supply disruptions in the country.
The figures will now feed into the central bank's policy deliberations as it weighs how to respond to price growth running well above comfort levels.
Sources:
Reuters: Philippine annual inflation at 7.2% in September
