MANILA: Philippine inflation jumped to an almost 10-year high in September, data showed Friday, putting pressure on President Rodrigo Duterte to act as the cost of food and fuel hit the country鈥檚 poor in the pocket.
Consumer prices have risen every month this year, with food surging further after Typhoon Mangkhut, the world鈥檚 most powerful storm in 2018, smashed into the country鈥檚 northern agricultural heartland in mid-September.
Increases have been powered by a collision of factors including Duterte鈥檚 massive spending on a broad infrastructure building effort, climbing oil prices and weak farm output.
Consumer price increases accelerated to 6.7 percent, from 6.4 percent in August, in the steepest climb since February 2009, the Philippine Statistics Authority said.
鈥淲e... understand that many are feeling the hit of a faster inflation rate, particularly those who toil so hard just to keep up,鈥� Duterte鈥檚 economics team said.
The tens of millions who get by on less than $2 per day in the Philippines have been especially hard hit by the increase.
The government has boosted imports of rice, the national cereal staple, following shortages but authorities acknowledged Friday that grain prices remain 鈥渆levated鈥� due to the typhoon.
Analyst Astro del Castillo told AFP the problem 鈥渨ill not be solved overnight鈥� because some factors are beyond the government鈥檚 control, such as oil prices. Global crude prices are sitting at a four-year high around $85 and there are warnings it they could break $100.
However, del Castillo said the people expect the president to do something about it.
鈥淵ou鈥檝e seen the (opinion) surveys. The people would like inflation to be the government鈥檚 top priority,鈥� he added.
The Philippine central bank last month jacked up key rates for the fourth time this year, while also raising its inflation targets for this year and next.
Passage of a law lifting import quotas on rice and extra imports of other food items 鈥渃ould lead to an earlier return of inflation to within the target range in 2019,鈥� it added.
Analysts believe the pain may not be over yet, with interest rates expected to climb another full point in the next six months.
The Philippine peso has been hovering at 13-year lows, closing at 54.32 to the US dollar on Thursday 鈥� making imports more expensive 鈥� while the stock market has plunged about 17 percent since December, making it one of the world鈥檚 worst performers.