Inflation soars to 6.9% in September
Year-on-year inflation in the Philippines quickened to 6.9 percent in September from 6.3 percent in August, the highest since October 2018, the Philippine Statistics Authority (PSA) said on Wednesday.
With the most recent statistic, the average inflation rate for the first nine months is now 5.1%.
The increase in the cost of energy and staple foods, together with the devaluation of the Philippine peso, according to PSA chief Dennis Mapa, were the main factors in the month of September’s inflation rate.
According to Mapa, the cost of food and non-alcoholic drinks increased annually at a higher rate of 7.4%, followed by the cost of housing, water, electricity, gas, and other fuels, which increased annually at a rate of 7.3%.
On Monday, the Philippine peso closed at 59 pesos, a new record low against the US dollar. The peso’s value against the US dollar has dropped by more than 15% since the end of 2021.
A strong U.S. dollar, according to the central bank of the Philippines, is one of the main causes of the peso’s devaluation. Due to the U.S.’s “aggressive” monetary policy, several economists are worried that the peso would continue to depreciate. Government Reserve.
Arsenio Balisacan, the secretary of socioeconomic planning, stated that today’s inflation is “far more complex than what we have seen in recent decades.”
“In the near term, ensuring sufficient food supply while assisting the most vulnerable sectors will help us hurdle the current challenges,” he added.
