Transport inflation breached 20% as rising fuel costs added pressure on commuters, motorists and households, while rice and corn prices continued climbing
MANILA (November 6) — FILIPINO households faced mounting pressure on their daily budgets in October as inflation accelerated to 7.8%, its highest level since February 2023, when it reached 8.6%, with transport and fuel costs driving the latest surge.
Data released by the Philippine Statistics Authority (PSA) on Thursday, November 5, showed transport inflation jumping to 20.1% from 14.6% in September, reflecting the sharp increase in the cost of moving people and goods.
The impact extended beyond public transportation. The housing, water, electricity, gas and other fuels index also rose faster, reaching 9.3% from 8.4% a month earlier, adding to household expenses.
For commuters and workers who depend on daily public transport, the acceleration in transport costs means a larger share of household income may go toward getting to work, school and essential services.
Food prices offered little relief. Although food inflation eased slightly to 6.4% from 6.8%, the slowdown was uneven. Fish and vegetable prices recorded slower annual increases, but rice inflation climbed to 20.7% from 20.3%, while corn inflation accelerated to 19.3% from 17.3%.
The continuing rise in rice and corn prices is particularly significant for lower-income households, which spend a substantial portion of their budgets on basic food.
More concerning, core inflation — which excludes volatile food and energy prices — also increased to 5.4%, suggesting that price pressures are extending beyond fuel and selected commodities.
The erosion of purchasing power has likewise continued. PSA data showed that the peso’s purchasing power declined to 68 centavos in September relative to its 2018 base value of one peso, underscoring how much less consumers can buy with the same amount of money compared with the base year.
The accelerating inflation has also placed monetary policy under pressure.
The Bangko Sentral ng Pilipinas (BSP) raised its key policy rate by 50 basis points to 5.5% in October, bringing the total increase to 125 basis points this year.
The central bank has maintained that monetary tightening is necessary while inflation remains above its 3% target. Higher interest rates, however, can also make borrowing more expensive for households and businesses, potentially affecting consumption, investment and economic activity.
The BSP is scheduled to hold its next monetary policy meeting on December 17 and release its final monetary policy report for the year on December 23.
For ordinary Filipinos, the concern goes beyond the headline inflation figure. Rising transport and fuel costs affect the movement of workers, food and essential goods, while persistent increases in staple prices further squeeze household budgets.
The challenge for policymakers is not only to bring inflation down but also to address the cost pressures that consumers continue to absorb.
