Inflation jumps to 7.2 percent in September, the fastest in three and a half years and above forecasts
The PSA reported September inflation at 7.2%, up from 6.1% in August and above the 6.7% median of a BusinessWorld poll of 22 analysts (GMA News, BusinessWorld, Trading Economics). It is the fastest since March 2023 (7.6%). Food and non-alcoholic beverages rose 6.7% (from 4.6%), housing, water, electricity, gas and other fuels 8.4%, and transport 14.6%. Core inflation reached 4.7%. The BSP had projected 6.4% to 7.4%. Governor Remolona has said inflation is likely to peak around the fourth quarter.
Inflation at this level eats into wages and savings, and it narrows the central bank's room to support a weak economy, which grew only 2.3 percent in the second quarter.
Groceries, fares and electricity cost more than a year ago. If the central bank raises rates again, loans, credit cards and some mortgages will cost more.
The central bank had warned of the range, and a peak in the fourth quarter would mean relief is near.
A reading above economists' forecasts shows price pressure is broader than fuel alone, and core inflation at 4.7 percent says it is spreading.
Look at core inflation, not only the headline. A 4.7 percent core rate means the squeeze is no longer just oil. Watch the October 22 policy meeting and whether pump prices keep falling for diesel.
DailyDrop Philippines edition No. 3 · Morning · WED., OCT. 7, 2026