FX.co ★ Philippines Inflation Rate Surges to 7.8%

The annual inflation rate in the Philippines rose to 7.8% in October 2026 from 7.2% in September, surpassing market expectations of 7.6% and reaching its highest level since February 2023.

Transport inflation jumped to 20.1% from 14.6%, while inflation for housing, water, electricity, gas, and other fuels climbed to 9.3% from 8.4%. The ongoing conflict in the Middle East has pushed up energy costs in the Philippines, which is highly dependent on supplies from the region.

Price pressures also intensified in several other categories: restaurants and accommodation services (7.7% vs 7%), health (5.9% vs 5.6%), and furnishings and household equipment (5% vs 4.7%). By contrast, inflation for food and non-alcoholic beverages eased to 6.1% from 6.7%.

On a monthly basis, consumer prices increased by 0.7% in October, following a 1.0% rise in September. Core inflation accelerated to 5.4%—its highest level since September 2023—from a revised 4.8% in September, also coming in above market expectations of 4.8%.