FX.co ★ Philippines Inflation Slightly Eases in August

The Philippines’ annual inflation rate eased slightly to 6.1% in August 2026 from 6.2% in July, but still came in above market expectations of 6%. Price pressures in food and non-alcoholic beverages slowed to 4.6% from 5.2%, largely reflecting lower prices for vegetables, tubers, plantains, cooking bananas, and pulses. Inflation for housing and utilities also moderated, falling to 7.9% from 8.2%.

In contrast, transport inflation accelerated to 13.5% from 11.9%, driven by renewed fuel price increases in the latter half of August. Faster price growth was also recorded in alcoholic beverages and tobacco (6.3% vs. 6%), furnishings and household equipment (4.1% vs. 3.9%), and health (5% vs. 4.8%).

On a monthly basis, consumer prices rose 0.6%, the largest increase since April, after a 0.1% gain in July and above the expected 0.5% rise. Meanwhile, core inflation edged down to 4.1% from 4.2%, matching forecasts. For the January–August period, average inflation stood at 5.2%, remaining above the government’s 2%–4% target range.