October inflation seen accelerating to 7.6 percent
Inflation likely accelerated further in October as higher transport fares, electricity rates, fuel costs and a weaker peso broadened price pressures despite some relief from food prices, according to economists polled by The STAR.
Manila, Philippines — Economists predict inflation will surge to 7.6 percent in October, according to a recent survey by The STAR. The forecast, which surpassed the 7.2 percent recorded in September, is driven by factors such as increased transport fares, electricity rates, fuel costs, and a weaker peso. The range of estimates from 12 economists spanned from 7.3 to 7.8 percent.
Headline inflation, which reflects the overall price increase experienced by households, remains significantly higher than the Bangko Sentral ng Pilipinas' (BSP) target range of two to four percent for seven consecutive months. Leading economists including Metrobank's Nicholas Mapa, Chinabank's Domini Velasquez, Reyes Tacandong & Co.'s Jonathan Ravelas, and UnionBank's Ruben Carlo Asuncion projected the highest inflation at 7.8 percent.
The depreciation of the peso led to higher costs for imported goods, including fuel, food, raw materials, and other dollar-priced items. Recent wage and fare hikes added to price pressures across a broader range of goods and services. While some relief was observed in food prices, economists believe that the effects of earlier price shocks are spreading, potentially pushing inflation higher in November if pressures persist.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
