The Philippines’ annual inflation rate rose to 1.5 percent in August from 0.9 percent in July, led by faster-rising food and non-alcoholic beverage prices amid adverse weather, the Philippine Statistics Authority (PSA) said on Friday.
The August figure was lower than the 3.3 percent inflation rate recorded in August 2024. In the first eight months of 2025, the average inflation rate was 1.7 percent, remaining below the government’s 2 percent to 4 percent target range.
Inflation settled within the Bangko Sentral ng Pilipinas’ (BSP) month-ahead forecast of 1.0 to 1.8 percent.
The BSP said inflation is projected to average below the low-end of the target range in 2025 with the continued easing in rice prices.
“Inflation expectations also remain firmly anchored to the target. Meanwhile, possible electricity rate adjustments and higher rice tariffs could raise inflationary pressures over the policy horizon,” the BSP said.
According to the PSA, the main driver of the increase was a 0.9 percent annual gain in the heavily weighted index of food and non-alcoholic beverages, which saw a 0.2 percent annual decline in July. A slower annual decrease in transport costs, at 0.3 percent in August compared with 2.0 percent in July, also contributed to the rise.
Food inflation at the national level rose to 0.6 percent in August, following a 0.5 percent annual decline in July. Food inflation in August 2024 was 4.2 percent.
Inflation in fish accelerated to 9.5 percent from 6.3 percent, emerging as the top contributor to overall inflation in August. This was driven by slow import arrivals, adverse weather and above-normal rainfall that disrupted fishing activities in key areas. Similarly, vegetable inflation rose to 10.0 percent from a 4.7 percent deflation in the previous month.
Meat inflation, however, decreased to 7.1 percent from 8.8 percent but continued to be a major contributor to inflation. The index for rice saw a faster annual decline of 17.0 percent in August from 15.9 percent in July.
Food inflation accounted for 15.4 percent, or 0.2 percentage points, of the overall inflation in August.
Core inflation, which excludes volatile food and energy items, also increased to 2.7 percent in August from 2.3 percent in July. The core inflation rate was 2.6 percent in August 2024.
The government is intensifying efforts to ensure sufficient supply and keep prices of key commodities affordable despite recent weather disturbances, according to the Department of Economy, Planning, and Development (DEPDev).
DEPDev Secretary Arsenio Balisacan stressed the importance of closely monitoring the country’s weather outlook due to its potential impact on agricultural production. The Philippine Atmospheric, Geophysical, and Astronomical Services Administration (PAGASA) has forecasted seven to 15 tropical cyclones between September 2025 and February 2026.
“While inflation remains broadly manageable, the recent figures highlight how adverse weather conditions directly impact prices,” Balisacan said.
He also cited how La Niña conditions, which may develop from September to December, could lead to flooding and crop damage in high-risk areas.
“In anticipation of these weather shocks, we must ramp up preparatory activities and proactively ensure sufficient food supply to protect Filipino consumers from price volatility,” he said.
To support production and recovery, the Department of Agriculture’s (DA) Disaster Risk Reduction and Management Operations Center has allocated agricultural inputs to regional field offices. These include rice, corn, high-value crop seeds, drugs and biologics for livestock and poultry, and fish stocks with the necessary aquaculture equipment.
Registered farmers affected by extreme weather may also access financial and insurance assistance through the Survival and Recovery Loan Program of the Agricultural Credit Policy Council, indemnification under the Philippine Crop Insurance Corporation, and rehabilitation funding through the Quick Response Fund.
“We also welcome the Department of Agriculture’s upcoming soft launch of a command centre in November that will enhance data-driven management of the food supply chain and improve supply-demand forecasting,” Balisacan said.
The system will initially focus on the rice value chain and will eventually cover high-value crops, livestock, poultry and fisheries. It will also establish a central registry of food and cold storage facilities and dry warehouses, including their stock levels.
The Food and Drug Administration has approved the commercial use of Volvac B.E.S.T. (Baculovirus Expressed System Technology) AI plus ND, the country’s first avian influenza vaccine. The vaccine provides immunity against the highly pathogenic avian influenza (HPAI) subtype H5N1 and velogenic Newcastle disease, both of which pose serious threats to poultry, public health and food security.
“We remain committed to implementing strategic policies that ease supply constraints and improve market efficiency,” Balisacan said.
“Our priority is to protect Filipinos, especially the most vulnerable, from the impact of rising prices while building resilience in our production systems to ensure stable and affordable food commodities for every household,” he said.
.
