Philippines: inflation intensifies, reaching a peak since 2023
Inflation in the Philippines surged to 7.8% in October, the highest level seen since February 2023, due to rising fuel prices, the government revealed on Thursday. This increase, slightly higher than forecasts, is mainly attributed to a 20% increase in transport costs, explained Dennis Mapa, chief statistician, during a public address.
“Challenges lie ahead,” warned Mapa, highlighting the potential impact of the El Niño-related drought on food supply and the persistence of energy price volatility.
The annual inflation rate now stands at 5.6%, significantly exceeding the government’s target of 2 to 4%. The depreciation of the Philippine peso, which reached a record level of 64 pesos per dollar last week, has exacerbated the situation, contributing to rising transport costs.
President Ferdinand Marcos urged the population to remain calm and attributed exchange rate issues to the surge in oil prices.
These inflation figures are released two weeks after the Central Bank of the Philippines raised its key interest rate by 50 basis points, bringing it to 5.50%.
This persistent inflation is hindering economic growth in the Philippines, which recorded a growth of only 2.3% in the second quarter, the lowest rate since the end of 2009, excluding pandemic periods. Data on GDP growth for the third quarter will be released next Monday.
Source
“Philippines : l'inflation au plus haut depuis 2023, portée par la flambée du carburant”
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