Philippines’ inflation accelerated again in September, ending four months of deceleration as fuel prices surged. Consumer prices rose 7.2% last month from a year earlier, the statistics agency reported Tuesday. That compares to 6.1% in August, and exceeds the median estimate of 6.8% in a Bloomberg News survey.
Inflation has been exceeding the central bank’s 3% target since the Iran war erupted, triggering a global energy supply shock and oil price surges that hit import-dependent nations like the Philippines. The peso’s weakness against the US dollar also exacerbated imported inflation. To rein in price pressures, the Bangko Sentral ng Pilipinas has raised its policy rate by a cumulative 75 basis points since April.
Elevated inflation risks further slowing consumption in the Philippines, which posted the second-weakest growth among major Southeast Asia economies in the second quarter.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing