The country’s inflation rate quickened to 1.5 percent in August 2025, up from 0.9 percent in July, according to the Philippine Statistics Authority (PSA).

This brings the average inflation from January to August 2025 to 1.7 percent. By comparison, inflation was much higher a year ago at 3.3 percent in August 2024.

PSA said the increase was mainly due to rising food prices, particularly fish and vegetables, which became more expensive during the month.

“Nakita natin ‘yong inflation rate sa National Capital Region, ang nagdala talaga nito ay ang presyo ng pagkain,” said PSA Undersecretary Claire Dennis S. Mapa, PhD, noting that vegetable prices played a major role.

Main Factors Behind the Increase:

• The index for food and non-alcoholic beverages rose by 0.9 percent in August, reversing its 0.2 percent drop in July.

• The transport sector recorded a slower decline of 0.3 percent, compared to a sharper 2.0 percent drop in July.

• Higher price movements were also noted in health, household equipment and maintenance, and personal care products.

Meanwhile, slower price growth was seen in housing and utilities, education, and clothing and footwear.

The biggest contributors to the overall inflation were:

• Housing, water, electricity, gas and other fuels (28% share),

• Food and non-alcoholic beverages (23.7% share), and

• Restaurants and accommodation services (15.1% share).

Food Inflation

Food inflation turned positive in August at 0.6 percent, compared to a 0.5 percent decline in July. Still, this was far lower than the 4.2 percent recorded in August 2024.

“Sa presyo ng pagkain malaki rito ‘yong vegetable dahil sa mga bagyo. Ineexpect naman natin na talagang magkakaroon ng pagtaas ng presyo ng vegetables. Ang malaking nagcontribute ay ‘yong mga vegetables [at] ‘yong presyo ng mga isda,” Usec. Mapa explained.

• Vegetables, root crops, bananas, and pulses jumped by 10 percent, after dropping by 4.7 percent in July.

• Fish and other seafood rose by 9.5 percent from 6.3 percent the month before.

• Oils, fats, and prepared food products also saw higher increases.

“Nag-attribute na ‘yong impact ng mga bagyo noong mga nakaraang buwan, particularly sa mga vegetables,” Usec. Mapa added.

However, meat, dairy, and fruits posted slower price growth, while rice prices fell by 17 percent.

Inflation by Area

• National Capital Region (NCR): Inflation quickened to 2.9 percent in August from 1.7 percent in July, mainly due to higher food and utility costs.

• Areas Outside NCR: Inflation rose to 1.1 percent from 0.7 percent in July. Central Visayas posted the highest rate at 3.0 percent, while BARMM registered the largest decline at 1.3 percent.