Headline inflation in the Philippines rose to 1.5% in August from 0.9% in July, staying within the Bangko Sentral ng Pilipinas’ (BSP) forecast range of 1.0%–1.8% for the month.

This brings the year-to-date average to 1.7%, still below the government’s 2%–4% target range.

The uptick was driven mainly by higher food inflation, as weather disturbances disrupted the supply of vegetables and fish. Rice prices, however, continued to decline due to adequate supply, softer international prices, and government stabilization measures.

Non-food inflation also rose as domestic fuel pump prices increased compared to July. On a month-on-month seasonally adjusted basis, headline inflation stood at 0.5%, while core inflation quickened from 2.3% to 2.7%.

The BSP expects inflation to remain below target in 2025 before returning to the 2%–4% range in 2026–2027. It said it will continue to monitor risks and calibrate monetary policy to safeguard price stability and support economic growth.