FX.co ★ Philippines Inflation Rate at 5-Month High

As of August 2025, the annual inflation rate in the Philippines has escalated to 1.5%, exceeding market predictions of 1.3% and rebounding from the previous month’s over five-and-a-half-year low of 0.9%. This latest figure is the highest recorded since March and is primarily attributed to the increased costs of food and non-alcoholic beverages, which climbed from a decrease of 0.2% in July to 0.9%. Other notable contributors include furnishings, household equipment and routine maintenance, which rose to 2.4% from 2.1%, and health-related expenses, which increased to 2.9% from 2.6%. Meanwhile, the decrease in transport costs slowed to -0.3%, compared to -2% in the prior month. Conversely, inflation moderated for clothing and footwear, easing to 1.7% from 1.8%, and for housing and utilities, which fell to 2.1% from 2.2%, along with education dropping to 2.9% from 4.2%. On a month-to-month basis, consumer prices surged by 0.6%, marking the most significant increase in three months, following a 0.3% rise in July. Core inflation, which strips out specific food and energy categories, heightened to 2.7%, the peak in eight months, up from 2.3% in the previous period.