Inflation accelerates to 6.1% in September

Philippine Tribune
Philippine Tribune

INFLATION further accelerated in September amid a sharp increase in key food items and transport costs, the Philippine Statistics Authority (PSA) reported on Thursday.

The September figure marked an increase from August’s 5.3 percent but lower than the 6.9 percent recorded in the same month of the previous year.

This matched the 6.1 percent inflation in May of this year. It also fell within the forecast range of 5.3 to 6.1 percent set by the Bangko Sentral ng Pilipinas (BSP) for the month and also exceeded the 5.4 percent median in a Manila Times poll of economists.

“The uptrend in the overall inflation in September 2023 was primarily brought about by the higher year-on-year increase in the heavily-weighted food and non-alcoholic beverages at 9.7 percent during the month from 8.1 percent in the previous month,” the PSA said in a statement.

“Transport, with an inflation rate of 1.2 percent during the month from 0.2 percent in the previous month, also contributed to the uptrend of the headline inflation,” it added.

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Meanwhile, core inflation, which excludes the volatile food and energy items, continued to slow down. It declined to 5.9 percent from the 6.1 percent recorded in August, but it remained higher than the 5.0 percent figure seen in September 2022.

Year-to-date, the overall inflation rate reached 6.6 percent, while core inflation reached 7.2 percent. These figures still significantly exceeded the central bank’s target range of 2.0 to 4.0 percent.

In September, food inflation at the national level saw a notable rise to 10.2 percent, up from 8.2 percent in September.

“The acceleration of food inflation in September 2023 was mainly brought about by the higher inflation for rice with a double-digit inflation rate of 17.9 percent during the month from 8.7 percent in August 2023,” the PSA said.

“This was followed by meat and other parts of slaughtered land animals with an inflation rate of 1.3 percent during the month from a -0.1 percent inflation rate in August 2023,” it added.

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