The Philippines' headline inflation increased to 2.3% in October from 1.9% in September, driven by rising costs of food and non-alcoholic beverages, as reported by the Philippine Statistics Authority on Tuesday. This rise has put the year-to-date inflation rate at 3.3%, a decrease from 4.9% a year ago.
Food inflation hit 3%, largely due to surges in rice and corn prices, coupled with slower declines in transport costs, which have further contributed to inflationary pressures. Core inflation, which excludes volatile food and energy prices, remained stable at 2.4% in October, significantly below the 5.3% reported last year.
In the National Capital Region (NCR), inflation eased to 1.4%, whereas regions outside NCR experienced an uptick to 2.6%, primarily caused by a 3.1% rise in food costs. The region of Western Visayas reported the highest inflation rate at 3.9%, while the Cordillera Administrative Region had the lowest at 1.4%.
ING Research indicated that forthcoming rate decisions will depend on both domestic inflation trends and the performance of Asian currencies, especially the Philippine peso (PHP), following the results of the US presidential election. 'A period of uncertainty lies ahead until we have more clarity,' ING Research noted..