The Philippines’ inflation rate accelerated further to a new record-high of 7.7% in October as global headwinds contributed to to the spike in inflation rates worldwide.
According to the Philippine Statistics Authority (PSA), the 7.7% inflation rate posted in October is the highest recorded inflation rate in the country since December 2008.
“The headline inflation in the Philippines continued its uptrend as it moved up further to 7.7 percent in October 2022, from 6.9 percent in September 2022. This is the highest recorded inflation since December 2008.”
Inflation is the general increase of prices of goods and services in an economy over a given period of time. Inflation rate is measured using the Consumer Price Index (CPI).
From January to October 2022, the Philippines’ average inflation rate was pegged at 5.4 percent which is significantly higher compared to the inflation rate recorded in October 2021 at 4.0 percent.
PSA said that the continued spike of the October 2022 inflation was primarily attributed to the higher annual growth rate in the index for food and non-alcoholic beverages at 9.4 percent as compared to the 7.4 percent last September.
Other commodity groups which contributed to the uptrend of the inflation rate in October 2022 include the following: alcoholic beverages and tobacco at 10.4 percent; clothing and footwear at 3.1 percent; housing, water, electricity, gas and other fuels at 7.4 percent; furnishings, household equipment and routine household maintenance, 3.8 percent; health at 2.6 percent; recreation, sport and culture at 3.0 percent; restaurants and accommodation services at 5.7 percent; an personal care, and miscellaneous goods and services, 3.7 percent.
Meanwhile, PSA noted slower annual increases in the indices of transport at 12.5 percent; and education services at 3.4 percent. Information and communication, and financial services retained their previous inflation rates.
PSA also observed an increased food inflation in the country from 7.7 percent in September to 9.8 percent in October which was predominantly influenced by the increased inflation for vegetables, tubers, plantains, cooking bananas and pulses at 16.0 percent; and meat and other parts of slaughtered land animals at 11 percent.
Similarly, inflation in Areas Outside National Capital Region (AONCR) accelerated to 7.6 percent in October 2022, from 7.0 percent in September 2022.
Region XI (Davao Region) remained the region with the highest inflation at 9.8 percent, while Region XII (SOCCSKSARGEN) and Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) both had the lowest inflation rate at 6.5 percent.
The Office of the Secretary in its social media page, explained that global headwinds have contributed to the spike in the inflation rates of countries worldwide particularly, the emergence of countries from Covid-19 lockdowns which caused demand-driven inflation and the continuing Russian-Ukraine war which continues to disrupt the supply chain.
Moreover, the strengthening of the dollar has significantly affected most international trades and the recent Avian influenza outbreak which affected prices of poultry products also influenced inflation rates worldwide. (DG)
