Philippine Inflation Quickens To 1.5 Per Cent In August

2025-09-05 05:30:25

(MENAFN- IANS) Manila, Sep 5 (IANS) The Philippines' annual headline inflation quickened to 1.5 per cent in August from 0.9 per cent in July, mainly due to higher food prices caused by unfavorable weather conditions, the Philippine Statistics Authority (PSA) said on Friday.

PSA chief Dennis Mapa said in a news conference that the food and non-alcoholic beverages index, a major component of the basket, increased by 0.9 per cent in August, reversing a 0.2 per cent annual drop in July 2025. He noted that this shift was the primary source of upward pressure for the month, Xinhua News Agency reported.

Mapa said the slower annual decrease in transport at 0.3 per cent in August 2025 from 2.0 per cent in the previous month also contributed to the uptrend.

The August inflation rate brings the national average inflation from January to August 2025 to 1.7 per cent. In August 2024, the inflation rate was higher at 3.3 per cent.

The core inflation, which excludes selected food and energy items, rose to 2.7 per cent in August 2025. In August 2024, core inflation was registered at 2.6 per cent.

In a separate statement, the Philippines' Department of Economy, Planning, and Development Secretary Arsenio Balisacan emphasized the importance of closely monitoring the country's weather outlook due to its potential impact on agricultural production.

"While inflation remains broadly manageable, the recent figures highlight how adverse weather conditions directly impact prices," Balisacan said.

The Philippines' state weather bureau, PAGASA, has forecasted up to 15 tropical cyclones between September 2025 and February 2026.

Last month, the Philippine Statistics Authority said that Philippines' total external trade in goods increased by 7.7 per cent in July 2025 to 18.72 billion US dollars from 17.38 billion dollars in July 2024.

Of the total external trade in July 2025, the agency said 60.8 per cent were imported goods, while the remaining 39.2 per cent were exported goods.

The agency said the balance of trade in goods, or the difference between the value of exports and imports, amounted to -4.05 billion dollars in July 2025, indicating a trade deficit with an annual decrement of 17 per cent.

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