The Philippines’ headline inflation accelerated to 1.5 percent in August from 0.9 percent in July, marking the fastest rate in five months, based on the latest Philippine Statistics Authority (PSA) data.
The PSA data released over the weekend showed core inflation, which excludes volatile food and energy prices, also picked up pace to 2.7 percent, its quickest in eight months.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the inflation rate in the preceding month of July “could already be the bottom” for the year.
He said prices are likely to pick up to 2 to 4 percent target range set by the Bangko Sentral ng Pilipinas (BSP) for the rest of 2025.
PSA data showed the average inflation rate for the first eight months of the year stood at 1.7 percent.
Key drivers
The primary driver of the August inflation uptick was the food and non-alcoholic beverages sector, which at a 0.9 percent rate, accounted for nearly 70 percent of the overall increase.
Specifically, prices of vegetables, tubers and fish rose significantly.
While most sectors saw price increases, the transport sector indicated a negative inflation rate of -0.3 percent, primarily due to decreases in the prices of gasoline and diesel.
Looking ahead
National Statistician Claire Dennis Mapa said he sees inflation continuing to accelerate in the coming months, driven by potential price increases in food, transport and utilities.
While Mapa expects rice inflation to remain negative, its contribution to overall inflation may decline.
Ricafort echoed this sentiment, projecting that the full-year inflation average for 2025 could settle at 1.8 percent.
