Manila, Oct 7 : The Philippines' year-on-year headline inflation quickened to 1.7 per cent in September from 1.5 per cent in August, due to higher transport and food costs, the Philippine Statistics Authority (PSA) said on Tuesday.

In a news conference, PSA Chief Dennis Mapa said that the uptrend in overall inflation in September was primarily driven by the annual increase in the transport index, which rose to 1 per cent from a yearly decline of 0.3 per cent in August.

Also contributing to the uptrend in overall inflation was the higher annual increment in the food and non-alcoholic beverages index, at 1 per cent in September, compared to 0.9 per cent in the previous month.

Mapa said that the September inflation rate brings the national average inflation from January to September 2025 to 1.7 per cent. In September 2024, the inflation rate was higher at 1.9 per cent.

Core inflation, which excludes selected food and energy items, slowed down to 2.6 per cent in September 2025.

In September 2024, the core inflation rate was noted at 2.4 per cent, Xinhua news agency reported.

In a separate statement, the Philippines' Department of Economy, Planning, and Development said the September figures point to manageable price movements despite recent supply-side pressures.

"The slight uptick in inflation underscores the sensitivity of domestic food prices to supply disruptions. We are working closely with various agencies to stabilize supply, keep essential goods affordable, and safeguard household welfare," Secretary Arsenio Balisacan said.

"The Department of Agriculture will also establish food corridors to minimize supply disruptions. These will feature greenhouses, storage, and post-harvest facilities that can strengthen the resilience of our food systems," said Balisacan.

According to a report released by the Asian Development Bank on September 30, Robust domestic demand, coupled with subdued inflation, is expected to support Philippine economic growth this year and next.

In its Asian Development Outlook (ADO) September 2025 report, the ADB forecasts the country's gross domestic product (GDP) to expand by 5.6 per cent this year and 5.7 per cent in 2026, steady from last year's 5.7 per cent growth.

The 2025 GDP projection was maintained from the July ADO forecast, while the 2026 growth estimate was slightly lower than 5.8 per cent in July. Still, the Philippines is forecast to remain a bright spot in Southeast Asia, with the second-highest GDP expansion in the region.

/IANS