Consumer prices further accelerated in September due to a double-digit increase in the price of rice despite the implementation of the price cap last month.

The latest figures from the Philippine Statistics Authority showed on Thursday that the country's headline inflation rate increased by 6.1 percent last month, its sharpest rate in four months.

That percentage is above the 5.5 percent expectation in a DAILY TRIBUNE poll of economists earlier this week and the 5.3 percent rate recorded in August. The latest reading also placed the inflation rate at the upper end of the Bangko Sentral ng Pilipinas' September projection.

The Food and Non-Alcoholic Beverages index recorded an inflation print of 9.7 percent, contributing 84.4 percent to the overall increase. Contributing to the faster inflation in Food and Non-Alcoholic Beverages was the faster increase in the prices of rice.

Rice inflation soared to 17.9 percent year-on-year, the fastest pace since March 2009, and more than double the 8.7 percent in August despite President Ferdinand Marcos Jr. imposing the rice price cap for nearly a month.

"The significant contributor to the increase in the inflation of food and non-alcoholic Beverages is the faster rise in the prices of cereals and cereal products. An example of this is rice," National Statistician Dennis Mapa said in a virtual briefing.

The transport sector, which increased its rate from 0.2 percent to 1.2 percent in September, is the second commodity group to contribute to the overall acceleration of inflation last September.

Other commodity groups that experienced larger year-on-year increments include health (4.1 percent from 3.9 percent), recreation, sport, and culture (5.1 percent from 4.9 percent), and education services (3.6 percent from 2.9 percent).

When asked if the price controls were successful in reducing rice inflation, Mapa said that compliance was "mixed" across different regions.

Only 640 of the 2,601 regularly milled rice products under observation, Mapa said, were within the P41 per kilo price cap.

Regarding well-milled rice, 687 out of 3,498 items were in compliance with the P45 per kilo price ceiling, or around 20 percent.

However, Mapa acknowledged that more research is necessary to determine the effectiveness of the pricing control techniques.

Although inflation jumped unexpectedly during the month of September, China Banking Corp. chief economist Domini Velasquez expects headline inflation to decline moving forward.

"Fourth quarter inflation prints will benefit from favorable base effects. Additionally, early indicators show that inflationary pressures could be easing-the rice harvest season is underway," Velasquez said.

"However, the September inflation print increases the chance of a BSP rate hike in November, despite the supply-side nature of the recent shocks," she added.