Philippines August Inflation Eases to 6.1%

MANILA, Philippines — Inflation in the country eased within the government’s target range as it slightly declined to 6.1 percent in August from 6.2 percent in July, according to the latest report from the Philippine Statistics Authority (PSA). The figure was within the Bangko Sentral ng Pilipinas’ (BSP) forecast range of 5.5 percent to 6.5 percent. This is also the fourth time in 2026 that the headline inflation rate has gone down since May. "‘Yung ating inflation rate na 6.1 percent, mataas pa rin talaga yun. Pero at least in the last four months, nag-ease na," National Statistician Dennis Mapa said in a press briefing on Friday, September 4. The country’s central data agency said the downtrend was mainly driven by slower increases in the prices of food and non-alcoholic beverages and in housing, water, electricity, gas and other fuels. The yearly increase in the prices of food and non-alcoholic beverages slowed to 4.6 percent in August from 5.2 percent in the previous month, while inflation in housing, water, electricity, gas and other fuels also fell to 7.9 percent from 8.2 percent. Slower price increases were also observed in information and communication, recreation, sports and culture, and education services. The inflation rate in Metro Manila reflected the easing of the national inflation rate, slowing to 4.1 percent in August from 4.4 percent in July. The decline in the inflation rate in the capital region was driven by a slower yearly price increase in housing, water, electricity, gas and other fuels, with inflation at 6.8 percent in August from 7.9 percent in the previous month. Inflation also went down in areas outside Metro Manila, to 6.6 percent in August from 6.7 percent in the previous month. However, prices are increasing much faster for the lowest-earning households in the Philippines. The statistics agency said the inflation rate for the bottom 30 percent remained at 8.2 percent in August, the same rate as in July and higher than the national inflation rate. This means the country’s lowest-income families feel faster increases in the prices of goods and services they typically consume, which the data agency said are food and non-alcoholic beverages, with a 52.5 percent share; housing, water, electricity, gas, and other fuels, with an 18.9 percent share; and transport, with a 12 percent share. In August, inflation in food and non-alcoholic beverages declined to 8.0 percent from 8.3 percent in July. Meanwhile, inflation went up in housing, water, electricity, gas, and other fuels, to 10.3 percent in August from 10.1 percent previously, as well as in transport, to 15.3 percent from 14.2 percent in July.