Philippines October inflation at highest since December 2008

Philippine annual inflation accelerated to 7.7% in October, the highest since December 2008 and up from the previous month’s 6.9%, the statistics agency said on Friday.

Last month’s inflation rate was above the 7.1% median forecast in a Reuters poll, and near the top end of the central bank’s 7.1% to 7.9% forecast for the month.

Inflation in January-October averaged 5.4%, well outside the official full-year target range of 2% to 4%.

Core inflation, which strips out volatile food and fuel items, increased to 5.9% in October from an upwardly revised 5.0% in September, the Philippine Statistics Authority said.

Bangko Sentral ng Pilipinas Governor Felipe M. Medalla said on Thursday the central bank will hike its key interest rates by 75 basis points at its Nov. 17 policy meeting to match the latest monetary tightening by the US Federal Reserve. — Reuters