Inflation rises under new admin

BY JULIA BUCAD

The inflation rate in the Philippines struck up anew under the new administration.

The Philippine Statistics Authority (PSA) reported that the headline inflation rate increased to 6.9 percent in September 2022, hitting its highest and fastest rate in four years, primarily due to rising food prices.

Electricity, gas and other fuels, and the operation of personal transport equipment remained the top causes of inflation in September 2022, contributing a total of 2.0 percentage points (PPT).

PSA head and national statistician undersecretary Dennis Mapa said at a press conference that headline inflation last October was more than the 6.3 percent rate in August 2022 and the 4.2 percent consumer price index (CPI) in September 2021.

Mapa stated that the risks of higher prices for goods and services remain throughout the year due to the effects of Super Typhoon Karding, which destroyed agricultural products, the approved fare hike in public transportation, the effect of peso depreciation on pump prices, which has a spillover effect on food and transportation costs, and the expected higher demand during the 'ber' months.

Meanwhile, Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said the inflation has steadily increased since March 2022, blaming the Russia-Ukraine war that began in February, which also increased global oil prices and other global commodities earlier this year.

The central bank was expected to raise rates again before the year ends.