Philippine Inflation Accelerates to 7.2% in September, Exceeding Forecasts

• Philippine inflation hit 7.2% in September, exceeding forecasts.
• Driven by rising food and fuel prices, ending four-month deceleration.
• Reinforces expectations for potential Bangko Sentral ng Pilipinas rate hikes.

Philippine consumer price inflation accelerated to 7.2% year-on-year in September, up from 6.1% in August, marking the first increase in five months. This figure surpassed the market consensus forecast of 6.6%, primarily driven by a sharp rebound in food prices, particularly non-rice items, and surging fuel costs. While the Bangko Sentral ng Pilipinas (BSP) had projected a range of 6.4% to 7.4% for the month, the higher-than-expected print suggests persistent inflationary pressures. The data reinforces expectations for potential further monetary policy tightening by the BSP, with some analysts anticipating another 25 basis point rate hike.