This is the highest recorded inflation since October 2018, the Philippine Statistics Authority said Wednesday, Oct. 5, 2022.
September inflation in Central Visayas also accelerated to 8.1 percent from 7.4 percent in August.
With this month’s inflation, the country’s average inflation rate from January to September 2022 stood at 5.1 percent. September inflation last year stood at 4.2 percent.
The PSA said the acceleration in the country’s inflation rate in September 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.
The Bangko Sentral ng Pilipinas (BSP) said the September inflation is within its forecast range of 6.6 to 7.4 percent.
“This trend is observed in other countries as well, given the same experience of subdued demand or a low base the past year, because of Covid, and the external pressures this year from commodity prices, logistics bottlenecks, weather shocks, and wide swings in the exchange rate against the US dollar,” said National Economic and Development Authority Secretary Arsenio Balisacan in a statement.
“Today’s inflation is far more complex than what we have seen in recent decades. The government and its stakeholders need to collaborate for shared solutions. In the near-term, ensuring sufficient food supply, while assisting the most vulnerable sectors will help us hurdle the current challenges,” Balisacan said.
Outlook
The BSP noted that upside risks continue to dominate the inflation outlook in the near term.
“Price pressures could come from the potential impact of higher global non-oil prices, pending petitions for further transport fare hikes, the impact of weather disturbances on prices of food items, as well as the sharp increase in the price of sugar,” the central bank said.
Meanwhile, the impact of a weaker-than-expected global economic recovery continues to be the main downside risk to the outlook.
“Nevertheless, inflation risks are seen to be broadly balanced in the medium-term as global commodity prices ease going forward,” the BSP said.