Philippine September inflation ties three-year high of 7.2%

The Philippines’ inflation rate accelerated to 7.2 percent in September, ending four consecutive months of easing as food, household utilities and transport costs rose faster, according to the Philippine Statistics Authority (PSA).

The September print matched the three-year high recorded in April, when domestic pump prices felt the full force of the Middle East conflict’s impact on global oil supply. Inflation rose sharply from 6.1 percent in August and 1.7 percent a year earlier, bringing the average for the first nine months of 2026 to 5.4 percent, well above the government’s 2 to 4 percent target range.

Food and non-alcoholic beverages inflation rose to 6.7 percent in September from 4.6 percent in August. Housing, water, electricity, gas and other fuels inflation accelerated to 8.4 percent from 7.9 percent, while transport inflation climbed to 14.6 percent from 13.5 percent.

Together, the three groups accounted for 78.1 percent of overall inflation, showing that the September acceleration was concentrated in major household spending categories.

Food inflation rose to 6.8 percent from 4.6 percent in August and 0.8 percent a year earlier. The sharpest increase came from vegetables, tubers, plantains, cooking bananas and pulses, whose prices rose 10.7 percent year-on-year after declining 3.4 percent in August.

Rice inflation also accelerated to 20.3 percent from 19.4 percent. Other food categories that recorded faster inflation included flour, bread and other bakery products, pasta and other cereals at 4.5 percent; fish and seafood at 7.4 percent; fruits and nuts at 8.7 percent; and ready-made food and other food products at 3.4 percent.

Impact heavier on low-income households

The impact was heavier on lower-income households. Inflation among the country’s bottom 30 percent income households rose to 9 percent in September from 8.2 percent in August, bringing their January-to-September average to 6.5 percent. A year earlier, inflation for the group was at an annual decline of 0.2 percent.

Food accounted for 55.7 percent of the overall inflation experienced by the bottom 30 percent income group, contributing 5 percentage points.