The Bangko Sentral ng Pilipinas (BSP) said Friday inflation rate for August 2025 likely settled between 1.0 percent and 1.8 percent, higher than 0.9 percent in July.
The BSP attributed this to upward price pressures from fruits, vegetables and fish brought about by unfavorable weather conditions.
Other factors include higher electricity rates, elevated domestic fuel costs and the peso depreciation, the BSP said in a statement.
It said, however, the continued decline in rice prices and meat costs could partially offset these upward price pressures.
Data from the Philippine Statistics Authority showed that inflation rate eased to 0.9 percent in July 2025 from 1.4 percent in June. This was led by slower price increases for housing and a drop in food costs.
Inflation averaged 1.7 percent for the first seven months of the year, below the government’s 2 percent to 4 percent target range.
The BSP on Thursday slashed its key interest rate by another 25 basis points to 5.0 percent on broadly unchanged inflation outlook.
