Consumer prices climb for second month, hitting six-month high of 1.7% in September

The latest PSA data showed that the country’s inflation rate accelerated from 1.5 percent in August, even as the headline rate was lower than the 1.9 percent recorded in the same month last year.

The sharp increase in vegetable prices—up 19.4 percent in September from 10 percent in August and the highest since January—was a key contributor to the higher inflation. PSA chief Dennis Mapa said the increase was largely due to floods and rains in key producing provinces.

“We see that this might continue in the coming months because we’ve had several storms in recent months, for example, which could possibly keep our inflation rate elevated,” Mapa said.

Rice, meanwhile, continued to post year-on-year deflation or lower prices due to elevated levels a year ago, Mapa added.

Month-on-month, while regular and well-milled rice prices were lower compared to August, premium rice inched up in September, when the government’s 60-day ban on rice imports started.

Mapa said regular milled rice was sold at ₱40.23 per kilo, compared to September last year’s ₱50.47–a year-on-year price decrease of 20.3 percent.

“Month-on-month, it decreased because in August 2025, the average price per kilo of regular milled rice was ₱40.43, dropping by about ₱0.20 per kilo, reflecting a month-on-month change of -0.5 percent,” he added.

He also said that well-milled rice averaged ₱46.50 per kilo this September, compared to ₱55.51 in September 2024, reflecting a year-on-year decrease of 16.2 percent. In August, the average price was ₱46.51.

For special rice, Mapa noted that the price in September was ₱56.48 per kilo, compared to ₱64.50 per kilo in September 2024, marking a year-on-year decrease of 11.8 percent. In August, it averaged ₱56.32 per kilo, before showing a slight increase last month.

“Regular milled rice continues to decline month-on-month, well-milled rice remained almost the same on a month-on-month basis, and special rice increased month-on-month. This was observed in areas outside the National Capital Region (NCR),” he added.

The PSA also reported that the transport sector was another major driver of the faster inflation, posting a one-percent increase from -0.3 percent in August and contributing 71.3 percent of the overall uptick.

PSA data showed that the rise in transport costs was largely due to higher diesel prices, which climbed 5.1 percent from -0.8 percent, and gasoline prices, which improved to -0.9 percent from -6.1 percent in the previous month.

Mapa noted that transport inflation had been negative since February, adding that any increase in transport costs could trigger price hikes in other commodities.

Mapa added that restaurants and accommodation services also contributed to higher inflation, accounting for 5.8 percent of the total share. But he said the inflation rate in this sector remained relatively low at 2.5 percent in September, up from 2.3 percent in August.

Despite the increase in September, Mapa said inflation remains below the government’s two- to four-percent target range of manageable price increases deemed conducive to economic growth. End-August inflation averaged 1.7 percent.

In a statement, Department of Economy, Planning and Development (DEPDev) Secretary Arsenio Balisacan said that the September data indicate that price changes remain manageable despite recent supply-side pressures.

“The slight uptick in inflation underscores the sensitivity of domestic food prices to supply disruptions. We are working closely with various agencies to stabilize supply, keep essential goods affordable, and safeguard household welfare,” Balisacan said.

Balisacan also emphasized that the government is committed to ensuring sufficient food supplies and easing price pressures. As part of these stabilization efforts, imports of certain vegetables, including carrots, onions, and broccoli, will be permitted.

“The Department of Agriculture (DA) will also establish food corridors to minimize supply disruptions. These will feature greenhouses, storage, and post-harvest facilities that can strengthen the resilience of our food systems,” he added.

Balisacan explained that the government is implementing long-term policies designed to achieve three main objectives: providing fair income for farmers, keeping rice prices affordable for consumers, and sustaining overall macroeconomic stability.

“What is critical is a calibrated approach that addresses the needs of both farmers and consumers while supporting the economy’s rapid, sustained, and inclusive growth,” he added. — Ricardo M. Austria