Philippine inflation eased for a second straight month in August as slower increases in food prices helped temper overall consumer costs, although inflation remained well above the government’s target.
Headline inflation slowed to 6.1 percent in August from 6.2 percent in July, largely on the back of lower food inflation.
Despite the moderation, average inflation for the first eight months of 2026 stood at 5.2 percent, exceeding the government’s 3.0-percent full-year target and its tolerance band of plus or minus one percentage point.
Price pressures also remained evident on a monthly basis. Seasonally adjusted headline inflation rose 0.5 percent in August, compared with zero growth in July.
Core inflation, which strips out volatile food and energy prices to provide a clearer picture of underlying price pressures, also eased slightly to 4.1 percent from 4.2 percent a month earlier.
For the country’s most vulnerable households, however, the cost-of-living squeeze remained severe. Inflation among households belonging to the lowest 30 percent income group stayed at 8.2 percent in August.
Food inflation slowed as domestic supply conditions became more stable, particularly following declines in vegetable prices and slower increases in fish prices.
Rice, however, bucked the trend, with inflation accelerating partly because of higher logistics costs.
Lower electricity and water rates also helped ease inflation in the housing, water, electricity, gas and other fuels category.
Transport costs moved in the opposite direction as higher global crude oil prices pushed up domestic pump prices, resulting in faster transport inflation during the month.
The August inflation print landed within the Bangko Sentral ng Pilipinas’ forecast range of 5.5 percent to 6.5 percent.
The BSP said it would continue to closely watch developments that could affect the inflation outlook, particularly geopolitical tensions in the Middle East and weather-related disruptions that could put renewed pressure on food and energy prices.
The central bank said its future policy decisions would remain guided by incoming economic data and its assessment of risks to the inflation outlook.