InFocus September 2026 – Going Back in Circle

Are we going in circles?
Inflation climbs back to 7.2% in September.

After four months of easing, Philippine inflation climbed from 6.1% in August to 7.2% in September 2026—matching April’s rate, with food, utilities and transport as the main contributors to the increase.

April and September recorded the highest inflation rate since March 2023, when it reached 7.6%. Average inflation for January–September 2026 stood at 5.4%.

August jobs improve from July, offering some breathing room for the labor market.

The latest figures, covering August, show a slight increase in the employment rate from the previous month, alongside declines in both unemployment and underemployment.

Employment by class of worker

Wage and salary workers made up the majority of employed Filipinos in August 2026. They were followed by self-employed workers without paid employees, unpaid family workers, and employers in their own family-operated farms or businesses.

More jobs, yes. But how much room to spend?

August’s improvement in employment is encouraging, but September’s rise in inflation could leave households with little extra to spend. Having a job helps pay the bills, but it does not automatically mean there is more money left after groceries, utilities and transport.

For retailers, the challenge is to earn a place in a tighter household budget. Shoppers may become more selective—switching brands, choosing smaller packs or waiting for deals. Keeping affordable essentials in stock and offering promotions that provide clear savings can help customers stretch their budgets and give them a reason to return.

Better employment figures offer a reason for cautious optimism, but stronger spending will depend on whether household incomes can keep pace with rising costs.

Download the full report: https://drive.google.com/file/d/1WsRbWCV28tJrvFCAkLwS-wSdQgIHSPOy/view

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