Philippine headline inflation eases to five-month low in August

By Katherine K. Chan, Reporter

SLOWER PRICE increases in food and electricity led headline inflation to its weakest pace in five months in August, the Philippine Statistics Authority (PSA) said on Friday.

PSA data showed headline inflation, as measured by the consumer price index, eased to 6.1% in August from 6.2% in July, but accelerated from 1.5% a year ago.

This was the slowest headline clip in five months or since the 4.1% in March.

This also fell within the central bank’s 5.5%-6.5% forecast for the month, but was slightly faster than the 6% median estimate of 20 analysts polled by BusinessWorld.

However, August marked the sixth straight month that the headline print settled above the Bangko Sentral ng Pilipinas’ (BSP) 3% target.

In the eight months to August, inflation averaged 5.2%.

The cooler headline print was largely driven by slower inflation in food and electricity, according to National Statistician Claire Dennis S. Mapa.

Meanwhile, core inflation, which excludes volatile food and oil prices, cooled for a second straight month to 4.1% from 4.2% in July. However, this was still faster than the 2.7% in August 2025.

Inflation in the National Capital Region (NCR) also slowed to 4.1% last month from 4.4% in July but quickened from 2.9% last year.

Outside NCR, it came it at 6.6%, slightly slower than July’s 6.7% but sharply faster than the 1.1% a year earlier.

However, inflation for the bottom 30% of income households in August steadied at July’s pace of 8.2%, but accelerated from -0.6% last year. As of August, it stood at an average of 6.2%.