The country's inflation rate continued to accelerate in October following the implementation of a fare hike

starting late September and high food prices.

In a press briefing, Economic Undersecretary and National Statistician Claire Dennis Mapa announced that the inflation rate in October rose to 7.8 percent from 7.2 percent in September.

This brought the year-to-date average inflation rate to 5.6 percent, which is still above the government’s comfortable ceiling of 2 to 4 percent. On a year-ago level, inflation was at 1.7 percent.

"Our inflation rate for October was really affected by the impact of the fare hike implemented late September," said Mapa.

Aside from the impact of fare increase, Mapa added that challenges and risk will continue in the coming months.

"We really have risks, first, in food; right now we are experiencing the impact of El Niño, particularly on agricultural products, so that creates a supply challenge and, of course, an impact on prices," he said.

"Second is the rising prices in the international market for energy commodities like gasoline, LPG, and diesel. Since the increase in transport (fare has) started, it will have an impact on the month of November and December inflation rates," he added.

Mapa stressed that transport inflation "weight in the inflation basket is much more substantial at 3.5 percent."

"Our challenges will continue in the coming months regarding energy commodities, food prices, and of course, other passenger transport by road and other inputs," he said.

October's inflation rate is within the forecast of the Central Bank of the Philippines of 7.1 percent to 8.1 percent.

In a statement, the Central Bank also noted that based on their projection the country's inflation rate would likely remain elevated in the coming months. Robina Asido/PHS