Philippine inflation eases to 6.1% in August

MANILA — Philippine headline inflation eased slightly to 6.1% in August from 6.2% in July as slower food price increases offset higher transport costs caused by rising global crude oil prices.

The moderation offered some relief from accelerating prices, but inflation remained well above the government’s full-year target and continued to weigh more heavily on poorer households.

Inflation for households in the lowest 30% income bracket remained at 8.2% in August, underscoring the disproportionate impact of high food and other essential costs on families with limited purchasing power.

Average headline inflation for the first eight months of 2026 stood at 5.2%.

That rate exceeded the government’s full-year inflation target of 3.0% and its tolerance band of plus or minus 1 percentage point, equivalent to a target range of 2.0% to 4.0%.

On a month-on-month seasonally adjusted basis, headline inflation rose by 0.5% in August after registering zero percent growth in July.

Core inflation, which excludes volatile food and energy items to provide a measure of underlying price pressures, eased to 4.1% in August from 4.2% in July.

Overall food inflation slowed as domestic supplies became more stable.

Lower vegetable prices helped temper food inflation during the month.

Inflation for fish also slowed in August.

Rice inflation, however, accelerated partly because of higher logistics costs.

Lower electricity and water rates helped moderate inflation in the housing, water, electricity, gas, and other fuels category.

Transport inflation accelerated as higher global crude oil prices pushed up domestic pump prices.

The August headline figure was within the Bangko Sentral ng Pilipinas’ forecast range of 5.5% to 6.5% for the month.

Official data from the Philippine Statistics Authority also showed national headline inflation easing to 6.1% in August from 6.2% in July. Philippine Statistics Authority

Despite the slower annual rate, the persistence of inflation above the 2.0% to 4.0% target range leaves households facing continued pressure on purchasing power, particularly those spending a larger share of their income on food and other necessities.

The BSP said it would continue monitoring the effects of recent developments in the Middle East, where geopolitical tensions could influence global energy prices.

The central bank will also closely watch weather-related disturbances because of their potential effects on domestic food production, transportation, and supply conditions.

Going forward, the BSP said its policy decisions would remain guided by incoming economic data and its assessment of risks surrounding the inflation outlook.