PH financial markets weaken as September inflation hits 7.2%

Philippine financial markets closed weaker on Tuesday as market players digested government data showing inflation accelerating to 7.2% in September, matching the fastest pace in more than three years and above market expectations.

The Philippine peso depreciated by 15 centavos to close at P61.771:$1 versus Monday’s finish of P62.621:$1. It hit an intraday low of P62.84:$1, just below the all-time low close of P62.86:$1 on September 14, 2026, the 25th record low so far this year.

Government data released earlier on Tuesday showed that the country’s inflation rate stood at 7.2% in September, up from 6.1% in August, the same level seen in April 2026, and the fastest since March 2023’s 7.6%.

Aside from the inflation data, Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort attributed Tuesday’s depreciation to US Treasury yields hitting 5.29%, which increased the US dollar's attractiveness.

“It is worth noting that the peso exchange rate was relatively stable versus the US dollar recently amid possible intervention/smoothening of market volatility at 61.60-62.80 levels/range highs recently,” he said in a mobile message.

Local equities also closed in the red, with the Philippine Stock Exchange index (PSEi) down by 66.09 points or 1.15% to 5,677.12, and the broader All Shares index down by 27.53 points or 0.86% to 3,170.73.

All sectoral indices declined — financials by 0.56%, industrial by 1.81%, holding firms by 0.15%, property by 1.52%, services by 1.24%, and mining and oil by 2.38%.

More than 536.164 million shares, valued at P5.457 billion, changed hands. Decliners led advancers, 120 to 73, while 69 issues were unchanged. — BAP, GMA News

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