Philippines’ inflation seen surging 5-5.2% in September

The inflation rate in the Philippines jumped to almost 5% in September, an economists’ poll showed. The increase was attributed to high food prices as supply constraints persist and oil prices rise.

Of the 17 economists consulted, 13 suggested that inflation would increase between 5% and 5.2%, a level not seen since 2018.

Five economists predicted inflation would touch 5.1%, while six economists placed a forecast of 5%. Four economists expected below 5% inflation.

Despite the possible inflation surge, Barclays’ Shreya Sodhani said it will not be a risk to economic recovery, reiterating inflation will ease by the end of the year.

The Bangko Sentral ng Pilipinas (BSP) earlier stated that the situation was only transitory.

Sun Life Financial’s Patrick Ella echoed the same sentiments, saying that the risk causes the country’s slow recovery in consumption.

On October 1, Goldman Sachs Economics Research reported that core inflation could jump by 90 basis points next year as more Asian countries are set to reopen in the first half of 2022.