Philippine inflation hits fresh peak of 7.8% in October, fastest in nearly four years
Philippine inflation accelerated to 7.8% in October, the fastest reading since February 2023, driven by higher energy costs and a weak peso. The headline clip exceeded analyst estimates but stayed within the central bank's forecast range.
The Philippine Statistics Authority (PSA) reported on Thursday that the country's headline inflation, as measured by the consumer price index (CPI), accelerated to 7.8% in October, up from 7.2% in September and 1.7% a year ago. This was the fastest inflation reading in nearly four years, since February 2023's 8.6%, and marked this year's peak so far, exceeding the 7.2% recorded in April and September.
The October clip outpaced the 7.6% median estimate of 22 analysts in a BusinessWorld poll but was within the Bangko Sentral ng Pilipinas' (BSP) 7.1%-8.1% forecast. Inflation has held above the BSP's 3% target for eight consecutive months, bringing the year-to-date average to 5.6%.
National Statistician Claire Dennis S. Mapa said October inflation heated up due to faster inflation in transport, housing and utilities, as well as restaurants and accommodation services. The PSA noted that the Philippines also saw higher import-driven inflation last month as the weak peso versus the dollar drove up the cost of imported goods. According to Mr. Mapa, the exchange rate pass-through was most evident in energy items, particularly diesel, gasoline, and liquefied petroleum gas, as well as imported rice.
Core inflation, which excludes volatile food and energy prices, picked up to 5.4% in October from a revised 4.8% in September and 2.5% the prior year. This was the fastest core print since 5.9% in September 2023.
In the National Capital Region, inflation quickened to 5.9% from a revised 5.3% in September and 2.9% a year earlier. Outside NCR, inflation accelerated to 8.2% from 7.6% the prior month and 1.3% in October 2025. Meanwhile, inflation for the bottom 30% of income households quickened to a nearly four-year high of 9.5% from 9% in September and -0.4% last year, driving their average inflation to 6.8% as of October.
