Philippine headline inflation went up to 1.5 percent in August, a sharp increase from the 0.9 percent in July.
In a briefing, National Statistician Dennis Mapa said the latest data brought the year-to-date average inflation to 1.7 percent, still below the lower end of the government’s 2 percent to 4 percent target range.
Mapa said weather disturbances contributed to the increase in food prices last month.
While rice continued to post a deflation of 17 percent in August, fish inflation accelerated to 9.5 percent from 6.3 percent, emerging as the top contributor to overall inflation in August.
This was driven by slow import arrivals, adverse weather, and above-normal rainfall that disrupted fishing activities in key areas.
Vegetable inflation also rose to 10 percent from a 4.7 percent deflation in the previous month.
On the other hand, meat inflation decreased to 7.1 percent from 8.8 percent but continued to be a major contributor to inflation.
The PSA reported that the overall inflation rate for the bottom 30 percent of income households at the national level recorded a slower annual decrease of 0.6 percent in August compared to 0.8 percent in the previous month.
This brings the national average inflation rate for this income group from January to August to 0.4 percent.
In a separate statement, the Bangko Sentral ng Pilipinas (BSP) said inflation is projected to average below the low end of the target range in 2025, primarily due to the continued easing of rice prices.
“The outlook for inflation is broadly unchanged. For 2026 and 2027, inflation is expected to trend higher but will remain firmly within the 3 percent + 1.0 ppt (percentage point) target range,” it said.
The BSP said inflation expectations also remain firmly anchored to the target.
Possible electricity rate adjustments and higher rice tariffs could raise inflationary pressures over the policy horizon.
“Emerging risks will continue to require close monitoring. The Monetary Board will determine the monetary policy response based on the evolving outlook for inflation and growth,” the BSP said.
“Going forward, the BSP will safeguard price stability by ensuring monetary policy settings are conducive to sustainable economic growth and employment.”