Philippines inflation jumps to 7.2% in September as food and core prices accelerate
Key Facts
The statement attributed to Philippine central bank Governor Eli Remolona on November 3 about the continuation of the monetary tightening cycle could not be verified after the post link could not be opened and no reliable public confirmation appeared. In the latest official price data available, headline inflation rose to 7.2% in September 2026 from 6.1% in August, according to the Philippine Statistics Authority. That lifted average inflation from January to September to 5.4%. Core inflation, which excludes some price components, also accelerated to 4.7% in September from 4.1% in August. These readings put the price trajectory at the forefront of the monetary policy context, without establishing the reasons behind the statement attributed to the governor.
The statistics authority said faster prices for food and nonalcoholic beverages contributed to the rise in headline inflation; the group’s annual index increased 6.7% in September, compared with 4.6% in August. The housing, water, electricity, gas and fuels index recorded an annual increase of 8.4% during the month. The transport index rose 14.6% year on year. These components show that price increases extended beyond food, while transport recorded the highest increase among the rates cited for these groups. The authority did not attribute these movements to currency fluctuations or to specific domestic pressures in the information presented here.
In the details on food, inflation accelerated to 6.8% in September from 4.6% in the previous month, according to the statistics authority. It attributed the acceleration to the vegetables, tubers, bananas and pulses index, which rose 10.7% year on year in September. The same index had recorded an annual decline of 3.4% in August, reflecting a shift from decline to increase in one month. This comparison highlights the scale of change in one food component identified by the authority as a driver of inflation. The food reading came alongside the increases recorded in housing and transport, while the available data do not provide a numerical breakdown of each component’s contribution to the overall rate.
On monetary policy, a table from the Philippine central bank showed the target reverse repurchase rate at 5.5000% a year in data published through October 23, 2026. The figure provides a reference for the interest rate stance announced on that date, but does not by itself confirm what was attributed to Remolona on November 3 about the continuation of the tightening cycle. The bank said in a statement that calibrated increases in interest rates would continue to anchor inflation expectations among consumers and businesses and limit the broadening of price pressures. The statement added that the increases were intended to contain the pass-through of price pressures and anchor expectations, and that the bank stood ready to take further action if needed. The bank said: "Calibrated increases in interest rates will continue to anchor inflation expectations among consumers and businesses and limit the broadening of inflationary pressures."
Price pressures coincide with slowing economic growth; the Philippine gross domestic product grew 2.3% year on year in the second quarter of 2026, according to the statistics authority. The reading provides context for the trade-off between curbing inflation and supporting economic activity, without on its own determining the effect of interest rate decisions on growth. In a more recent account of the bank’s moves, an EL7 report published on October 27 said the central bank raised interest rates to 5.50%. That report dates to October, while the inflation reading here is for September and the central bank’s published reverse repurchase rate is dated through October 23. This sequence gives readers separate timelines for the price data and the announced interest rate stance.
The Monetary Board is scheduled to hold its sixth meeting on December 17, 2026, according to the Philippine central bank’s calendar. The fourth monetary policy report is due to be published on December 23. The two dates are the next milestones listed on the bank’s calendar, following September inflation data and the interest rate reading published through October 23. The calendar provided no details about the meeting’s decision or content. The next meeting therefore remains the scheduled date for reviewing the monetary policy path, with the monetary policy report to follow six days later.