MANILA – The Philippines’ headline inflation accelerated to 1.5 percent in August 2025 from 0.9 percent in July, bringing the national average from January to August to 1.7 percent, the Philippine Statistics Authority (PSA) reported.

In August 2024, inflation was higher at 3.3 percent.

The PSA said the uptrend was mainly due to the annual increase in food and non-alcoholic beverages, which rose by 0.9 percent from a 0.2 percent decline in July. A slower drop in transport costs, at 0.3 percent from 2.0 percent the previous month, also contributed to the increase.

Higher inflation rates were recorded in furnishings and household equipment (2.4 percent), health (2.9 percent), information and communication (0.6 percent), and personal care and miscellaneous goods and services (2.5 percent). Meanwhile, slower increases were noted in clothing and footwear, housing and utilities, recreation, and education services.

The top contributors to August inflation were housing, water, electricity, gas and other fuels (0.4 percentage point), food and non-alcoholic beverages (0.4 percentage point), and restaurants and accommodation services (0.2 percentage point).

Food inflation climbed to 0.6 percent in August from a 0.5 percent decline in July, with vegetables, fish, oils and fats, and ready-made food driving the uptick. However, rice prices declined faster at 17 percent from 15.9 percent the previous month, while slower increases were noted in meat, dairy, and fruits.

Core inflation, which excludes food and energy items, also rose to 2.7 percent in August from 2.3 percent in July.

In Metro Manila, inflation quickened to 2.9 percent from 1.7 percent in July, driven by higher food and utilities costs. Areas outside NCR also posted faster inflation at 1.1 percent from 0.7 percent the previous month.