Philippines inflation near 14-year high; more rate hikes seen

The consumer price index climbed 7.7 percent in October from a year earlier, the fastest rise since December 2008, driven by price gains in key commodity groups, particularly food and non-alcoholic beverages. 

It outpaced the 7.1 percent median forecast in a Reuters poll.

The headline figure also came in near the top end of the central bank's 7.1 percent to 7.9 percent forecast for the month.

Inflation in January-October averaged 5.4 percent, well outside the central bank's full-year target range of 2 percent to 4 percent.

Indicating broadening price pressures, core inflation - which strips out volatile food and fuel - hit 5.9 percent in October from an upwardly revised 5 percent in September, the Philippine Statistics Authority said.

The peso, Southeast Asia's worst-performing currency, has lost more than 13 percent against the U.S. dollar so far this year.

The BSP, which has so far raised rates five times this year by a total of 225 bps to bring its benchmark overnight reverse repurchase facility rate to 4.25 percent, will hold its last policy meeting of 2022 on Dec. 15.