MANILA – Year-on-year inflation in the Philippines accelerated to 6.9 percent in Sept, from 6.3 percent in Aug, the highest since Oct, 2018, the Philippine Statistics Authority (PSA) said today.
The latest figure brings the average inflation in the first nine months to 5.1 percent.
PSA head, Dennis Mapa, said, the increase in the prices of essential food commodities and electricity rate, as well as, the depreciation of the peso, drove the inflation rate in Sept.
Mapa said, the prices of food and non-alcoholic beverages registered a higher annual growth rate of 7.4 percent, followed by housing, water, electricity, gas, and other fuels, which registered a yearly growth of 7.3 percent.
Meanwhile, the Philippine peso slid to a new record low to the U.S. dollar, closing at 59 pesos on Monday. Since the end of 2021, the peso has depreciated by over 15 percent to the greenback.
The Philippine central bank said, a strong U.S. dollar is one of the major reasons for the peso’s depreciation. Some analysts expressed their concern about a continuing depreciation of the peso, due to the “aggressive” monetary policy by the U.S. Federal Reserve.
“Today’s inflation is far more complex than what we have seen in recent decades,” Socioeconomic Planning Secretary, Arsenio Balisacan, said.
“In the near term, ensuring sufficient food supply, while assisting the most vulnerable sectors will help us hurdle the current challenges,” he added.
Source: Nam News Network