Philippine inflation expected to stay above 8 percent through year-end

Inflation in the Philippines is projected to remain above 8 percent through December, driven by rising global oil prices, higher rice costs, and a weakening peso. ANZ Research forecasts that the year-on-year inflation rate accelerated to 8.4 percent in October, up from 7.2 percent in September, marking the second consecutive month of faster price increases.

The weakening peso, which hit a historic low of 64.17 per dollar on October 28, has added pressure to food prices as the country is a net food importer. Crude oil prices also reached six-month highs by the end of October, keeping domestic fuel and transportation costs elevated. These factors are expected to squeeze household purchasing power throughout the fourth quarter.

The Bangko Sentral ng Pilipinas raised its key policy rates by 50 basis points in October, bringing cumulative hikes to 125 basis points since April. The central bank expects to maintain a tightening bias, with ANZ predicting two additional rate hikes in December and the first quarter of 2027 to reach 6.0 percent. Official October inflation figures are scheduled for release on November 5.

Read the full story at The Manila Times.