Philippine inflation surges to 7.8%, boosting case for rate hike
The prolonged Middle East conflict drove up the cost of fuel, electricity and transport in a nation heavily reliant on the region for its energy supplies.
The Philippine economy has been experiencing pressure from various fronts due to the second-weakest growth among Southeast Asia's major economies in the second quarter. President Ferdinand Marcos Jr's administration is grappling with surging oil prices and a peso at record lows as a result of the Middle East conflict driving up energy costs.
Consumer spending is also losing momentum, business confidence is weakening, and El Niño is straining the economy. With only 18 months left until the 2028 election, the central bank, the Bangko Sentral ng Pilipinas, is currently in a tightening cycle. In October, inflation accelerated to its fastest pace in almost four years, reaching 7.8% from a year earlier, as transport costs soared.
Another contributing factor was a faster annual increase in the housing, water, electricity, gas, and other fuels index. The central bank had previously anticipated inflation to hover between 7.1% to 8.1% for October, but the actual figure surpassed expectations.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- Philippine inflation surges to 7.8%, boosting case for rate hike freemalaysiatoday.com
