Merkado Barkada
September 8, 2025 | 9:30am
Inflation within the Philippines quickened to 1.5% in August from 0.9% in July [link], marking the quickest tempo in 5 months and outstripping the 1.3% median forecast in a Reuters ballot. The Philippine Statistics Authority stated the spike was pushed by surging vegetable costs, which jumped 10% (the steepest rise in seven months) after monsoon rains ravaged crops. That surge offset a document 17% drop in rice costs, pushing total meals inflation up 0.9%, reversing July’s 0.2% contraction. Regardless of the uptick, the Bangko Sentral ng Pilipinas (BSP), which has lower its benchmark fee to a “Goldilocks” 5%, stated inflation remains to be anticipated to fall beneath its 2 to 4 p.c goal vary this yr earlier than regularly returning to that band in 2026 and 2027.
MB BOTTOM-LINE: This isn’t alarming, however it’s not a victory lap for the BSP (or customers). There’s been lots of ink spilled in latest weeks concerning the evils of on-line playing and the way on-line playing might make necessities much less reasonably priced for the nation’s underclass, however that simply appears like OJ speaking about “searching for the actual killer.” On this case, the bloody knife that stabbed the Filipino client within the again at all times belonged to inflation. I’ve been watching the credit score stories present a better proportion of customers utilizing loans and bank cards to purchase fundamental items, and the market’s response: “noice, extra loans imply extra revenue for the banks.” The patron is getting roasted. Costs are nonetheless going up. Nothing is affordable. It appears like a “seize property when you can” sort of financial system proper now. I shudder to suppose what life shall be like for the yayas and day laborers in 2030.
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