(Manila, Philippines) – Philippine inflation accelerated to 7.8 per cent in October, its highest level since February 2023, as rising transport and housing-related costs outweighed slower increases in food prices.

The Philippine Statistics Authority released the figures November 5. The annual inflation rate rose from 7.2 per cent in September and exceeded the 7.6 per cent forecast in a Reuters survey. The new report measures prices during October; it is not a forecast or an announcement of another interest-rate increase.

Transport was the main driver of the acceleration. Its price index rose 20.1 per cent from a year earlier, compared with 14.6 per cent in September. The combined index for housing, water, electricity, gas and other fuels increased 9.3 per cent, up from 8.4 per cent.

Government broadcaster Radyo Pilipinas, reporting on the statistics agency’s briefing, identified higher fares and gasoline prices among the pressures. It also reported faster increases in cooking-gas costs and residential rents.

Food provided some relief, although prices continued rising overall. Annual food inflation eased to 6.4 per cent from 6.8 per cent, with slower increases for fish and vegetables helping moderate the index, according to the statistics authority. Rice moved in the opposite direction: its annual price increase reached 20.7 per cent, compared with 20.3 per cent in September.

The pressure also extended beyond volatile food and energy items. Core inflation increased to 5.4 per cent from a revised 4.8 per cent. Reuters reported that this, too, was the highest reading in more than three years.

The report follows an October decision by the Philippine central bank to raise its key policy rate by half a percentage point to 5.5 per cent. That was its fourth consecutive increase, Reuters reported. The bank’s next policy meeting is scheduled for December 17.

Price increases varied geographically. Inflation in the National Capital Region reached 5.9 per cent, while areas outside the capital region recorded 8.2 per cent, the statistics authority said. Nationally, inflation averaged 5.6 per cent over the first ten months of 2026.

Accompanying image: editorial illustration.

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