Inflation rockets to 7.8%

Filipino households are being squeezed by soaring prices as inflation surged to 7.8 percent in October, the highest level since November 2022 when it reached 8 percent. The latest high sets the Philippine rate alongside that of Lao PDR in the Asean region.

The latest spike, driven largely by transport and housing-related costs, has further battered household purchasing power and exposed the limits of the Marcos administration’s response to the cost-of-living crisis.

Philippine Statistics Authority (PSA) data released Thursday showed inflation accelerating from 7.2 percent in September and 1.7 percent in October last year.

The country’s headline inflation rate was low at 1.7 percent in October 2025 primarily due to a sharp deceleration in food inflation, which dropped to 0.3 percent from 0.8 percent the previous month.

Importation policies were a massive lever in pulling down food inflation during that period.

The core driver was the implementation of Executive Order 62 in July of that year, which slashed the import tariff on rice from 35 percent to 15 percent.

Economist Sonny Africa, executive director of Ibon Foundation, blamed President Ferdinand Marcos Jr.’s inaction for the increasing burden on ordinary Filipinos.

Africa noted that the country’s October inflation rate was matched only by that of Lao PDR.

Among Asean nations, Cambodia recorded 5.3 percent, Vietnam 5.1 percent, Indonesia 3.2 percent, Thailand 2.8 percent, Singapore 2.2 percent, Malaysia 1.8 percent, and Brunei Darussalam and Timor-Leste, 0.1 percent each.

“President BBM’s inaction really is behind poverty and hunger growing to their worst in decades. Even with inflation, the poorest and most vulnerable are ever the ones hit the worst,” Africa said.

He said the inflation figures might mean little to officials and political allies insulated by their wealth, unlike millions of Filipinos struggling to afford basic necessities.

Energy costs bite

Average inflation for the first 10 months reached 5.6 percent, reflecting the mounting pressure on household budgets.

Transport costs posted the sharpest increase, with inflation in the sector jumping to 20.1 percent in October from 14.6 percent in September, as elevated fuel prices drove up commuting and delivery expenses.

Inflation in housing, water, electricity, gas and other fuels rose to 9.3 percent from 8.4 percent.

Together, transport and housing-related costs contributed 3.7 percentage points to the overall inflation, underscoring how energy prices drive up the cost of living.

Rice remained another major pressure point, with inflation climbing to 20.7 percent from 20.3 percent despite some relief in other food prices.

Core inflation, which excludes selected volatile food and energy items, accelerated to 5.4 percent from 4.8 percent, indicating that price pressures extended beyond fuel and food.

The squeeze was even worse outside Metro Manila, where inflation reached 8.2 percent, compared with 5.9 percent in the National Capital Region.

The Department of Economy, Planning and Development said the government was strengthening food production, improving logistics, and expanding targeted assistance to sectors hit by higher energy costs.

In October, the government began rolling out P3 billion in fuel subsidies for about 300,000 farmers, fisherfolk, and agricultural delivery truck drivers.

Farmers and fisherfolk are to receive a one-time P5,000 subsidy, while delivery truck drivers will get P2,000 weekly to help offset fuel costs.

The Department of Agriculture reported releasing P11 billion in production support, cash assistance, and other interventions as of 21 October.

Energy authorities, meanwhile, are pursuing measures to secure the electricity supply amid the El Niño conditions and to contain power costs, including the temporary suspension of the Wholesale Electricity Spot Market Reserve Market.