August inflation eases to 6.1%
MANILA, Philippines — Inflation in the country fell within the government’s target as it slightly declined to 6.1% in August from 6.2% in July, according to the latest report of the Philippine Statistics Authority (PSA).
The figure was within the Bangko Sentral ng Pilipinas’ forecast range of 5.5% to 6.5%.
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%, 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.
(Our inflation rate of 6.1% is still high. But at least in the last four months, it eased.)
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% in August from 5.2% in the previous month, while inflation in housing, water, electricity, gas and other fuels also fell to 7.9% from 8.2%.
Slower price increases were also observed in information and communication, recreation, sports and culture, and education services.
Inflation in the regions
The inflation rate in Metro Manila reflected the easing of the national inflation rate, slowing to 4.1% in August from 4.4% 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% in August from 7.9% in the previous month.
Inflation also went down in areas outside Metro Manila, to 6.6% in August from 6.7% in the previous month.
For the bottom 30
Prices are increasing much faster for the lowest-earning households in the Philippines.
The statistics agency said the inflation rate for the bottom 30% remained at 8.2% 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% share; housing, water, electricity, gas, and other fuels, with an 18.9% share; and transport, with a 12% share.
In August, inflation in food and non-alcoholic beverages declined to 8% from 8.3% in July.
Meanwhile, inflation went up in housing, water, electricity, gas, and other fuels, to 10.3% in August from 10.1% previously, as well as in transport, to 15.3% from 14.2% in July.
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