Increase due to doubledigit gain in rice prices
Sept CPI opens the door to further interest rate hikes

MANILA, Oct 5 Reuters Consumer prices in the Philippines rose for a second month in September, increasing the pressure on the central bank to resume raising interest rates.

A doubledigit gain in the price of rice drove annual inflation to accelerate by 6.1 last month, its fastest pace in four months, according to data from the Philippine Statistics Authority released on Thursday.

That was higher than August39;s 5.3 rate and above the 5.3 forecast in a Reuters poll. The increase will make the central bank39;s 24 target for the year harder to reach.

The country39;s economic planning agency on Thursday said it would recommend extending the lowered tariff rates on rice until December 2024, a day after Philippine President Ferdinand Marcos Jr lifted the cap on rice prices.

With the supply of rice adequate, Marcos has pinned the blame on the increase in the cost of the national staple on hoarders, smugglers and price manipulators.

Rice inflation quickened by 17.9 in September, the fastest in over 14 years, the statistics authority said, helping fuel the 10.0 food inflation rate for the month.

The Philippines saw some slight moderation in underlying price pressures, with core inflation, which doesn39;t include volatile food and energy prices, easing to 5.9 in September from 6.1 in August.

September39;s fasterthanexpected inflation could convince the Bangko Sentral ng…