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BSP: Rice to keep inflation low

September 6, 2025

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Manila Bulletin

Despite last month's spike in consumer prices, the steady decline in rice costs is seen to keep a lid on inflation, with the Bangko Sentral ng Pilipinas (BSP) expecting it to average below two percent this year.

- By DERCO ROSAL

BSP: Rice to keep inflation low

Inflation quickened to 1.5 percent in August from 0.9 percent in July—the slowest in nearly six years. The faster inflation was driven by higher prices of food and nonalcoholic beverages, which climbed 0.9 percent after a 0.2-percent drop in July.

Still, August inflation falls within the central bank's forecast of one to 1.8 percent for the month.

"Inflation is projected to average below the low end of the target range in 2025, primarily due to the continued easing of rice prices," the BSP said in a statement released on Friday, Sept. 5.

The government is targeting to manage inflation within the range of two to four percent.

According to the Philippine Statistics Authority (PSA), rice inflation dropped at an even steeper pace of 17 percent last month from 15.9 percent in July, which was already the steepest decline since 1995.

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