The Philippines’ inflation rate surges to 6.9% in September
The headline inflation in the Philippines accelerated to 6.9 percent in September 2022, from 6.3 percent in August 2022. This is the highest recorded inflation since October 2018.
With this month’s inflation, the Philippines’ average inflation rate from January to September 2022 stood at 5.1 percent. In September 2021, inflation rate was observed at 4.2 percent.
The acceleration in the country’s inflation rate in September 2022 was primarily due to the higher annual growth rate in the index for food and non-alcoholic beverages at 7.4 percent, from 6.3 percent in August 2022. This was followed by housing, water, electricity, gas, and other fuels with 7.3 percent annual growth, from 6.8 percent in August 2022. Also contributing to the uptrend in the overall inflation in September 2022 were the higher annual increases in the indices of the following commodity groups:
a. Alcoholic beverages and tobacco, 9.8 percent; b. Clothing and footwear, 2.9 percent; c. Furnishings, household equipment, and routine maintenance, 3.5 percent; d. Information and communication, 0.5 percent; e. Recreation, sport, and culture, 2.7 percent; f. Restaurants and accommodation services, 4.6 percent; and g. Personal care, and miscellaneous goods and services, 3.4 percent.
On the other hand, lower annual increments were observed in the indices of health at 2.4 percent; transport at 14.5 percent; and education services at 3.5 percent.
Meanwhile, financial services retained its previous month’s inflation rate.
Core inflation, which excludes volatile food and energy items in the headline inflation, was lower at 4.5 percent in September 2022, from 4.6 percent in August 2022. In September 2021, core inflation was observed at 2.6 percent.
Inflation for food at the national level rose to 7.7 percent in September 2022, from 6.5 percent in August 2022. In September 2021, food inflation was lower at 5.2 percent.
The acceleration in the food inflation was primarily influenced by the positive annual growth rate in the index of vegetables, tubers, plantains, cooking bananas and pulses at 3.5 percent, from -2.7 percent in August 2022.
Faster annual growth rates were also seen in the following food groups:
a. Rice, 2.4 percent; b. Corn, 26.2 percent; c. Flour, bread, bakery products, pasta products, and cereals, 9.0 percent; d. Fish and other seafood, 9.1 percent; e. Milk, other dairy products and eggs, 7.6 percent; f. Oils and fats, 20.1 percent; g. Sugar, confectionery and desserts, 30.2 percent; and h. Ready-made food and food products not elsewhere classified, 6.7 percent.
On the contrary, slower annual growth rates were observed in the indices of meat and other parts of slaughtered land animals at 9.0 percent; and fruits and nuts at 3.8 percent.