FX.co ★ Philippines Inflation Rate Jumps to 7.2%

The Philippines’ annual inflation rate quickened to 7.2% in September 2026 from 6.1% in August, surpassing market expectations of 6.6% and matching April’s three-year high. Price pressures intensified across most major sectors, led by transport inflation, which climbed to 14.6% from 13.5%. Inflation for housing, water, electricity, gas, and other fuels also rose, to 8.4% from 7.9%, as the country’s heavy dependence on Middle Eastern oil left it particularly vulnerable to higher energy costs amid the regional conflict.

Food and non-alcoholic beverage inflation accelerated to 6.7% from 4.6%, while inflation for restaurants and accommodation services edged up to 7% from 6.8%. Meanwhile, core inflation rose sharply to 4.7%—the highest since November 2023—exceeding the 4.4% forecast and up from 4.1% in August. On a monthly basis, consumer prices increased by 1%, the fastest pace since April, beating both expectations and August’s 0.6% gain. This brought the average inflation rate for the year to date to 5.4%.