It is reported that inflation in the Philippines surged to 12.5% in August 2008, a 17 year high and the rise could impact economic growth targets for 2008. The National Statistics Office also revised upward the inflation rate in July 2008 to 12.3% from 12.2%. This brought the average inflation rate for the January to August 2008 period to 8.8%.

Mr Ralph Recto director general of National Economic & Development Authority said that "This figure is within the National Economic & Development Authority's inflation forecast of 12.1% to 12.7%. But with this trend, meeting the 5.5% growth for the year would be a tough challenge, though it remains our fighting target."

Soaring food and energy prices have already slowed economic growth to 4.6% in the first half of 2008, down sharply from more than 7% for the whole of 2007.