Philippine Inflation Rate Soars to 14-Year High in October
Philippine inflation has gotten much worse than we expected. According to the Philippine Statistics Authority and national statistician Dennis Mapa, the Philippines posted a 7.7-percent spike in October 2022. The last time we say this kind of number was back in December 2008, when inflation peaked at 7.8 percent. Unfortunately, the country continues to suffer from the effects of global economic instability and gaps in domestic policies.
In September, that figure was around 6.9 percent. We may point to factors like external pricing, the invasion of Ukraine, and global supply chain issues, among others, as the primary culprits. Early on, the government had set a target of a 2-to-4 percent rate for this year. The Bangko Sentral ng Pilipinas, however, estimated that the rate would likely fall anywhere between 7.1 and 7.9 percent. As of last month, the Philippines' year-to-date inflation is at 5.4 percent.
Inflation Is Expected to Peak in the Coming Months. What Happens Next?
Financial Adviser: 5 Ways Rising Inflation Can Be Beneficial and How You Can Take Advantage of It
What makes things worse is that there is a great chance that we have yet to see local inflation peak, considering the recent onslaught of typhoons the past weeks. The tropical storm Paeng, for instance, was said to have caused roughly P3 billion worth of agriculture damage. This could possibly lead to a substantial inflation increase in November.
Mapa, who hosted yesterday's press briefing, also pointed out that food inflation alone almost breached the double-digit mark in October, sitting at 9.4 percent. Housing, water, electricity, gas, and other fuels clocked in at 7.4 percent. Meanwhile, restaurants and accommodation services were at 5.7 percent.
Food prices in the National Capital Region also rose from 8.5 percent a month ago to 11.4 percent in October. A rise in prices outside Metro Manila had also been observed. The Davao region's inflation rate accelerated from 9.6 percent to 9.8 percent, as well.
National Economic and Development Authority Secretary Arsenio Balisacan has expressed that the country needs continued targeted relief systems and further investments in climate-smart agriculture technologies to address inflation and food security.