7% Inflation in the Philippines May Be Just Around the Corner

  • Rice loss at 558,441 metric tons as storm came during harvest
  • Central bank has pledged strong action at meeting next week
Damages at a bazaar after Typhoon Mangkhut struck the Philippines, on Sept. 15.Photographer: Carlo Gabuco/Bloomberg
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Seven percent inflation in the Philippines could be around the corner.

More than half a million metric tons of paddy rice were wiped out by Super Typhoon Mangkhut last weekend, adding pressure to rice prices which are already at a record. Michael Enriquez, chief investment officer at Sun Life of Canada Philippines Inc., forecast inflation of as high as 7 percent in September, from 6.4 percent last month, which was the fastest pace since 2009.