Inflation inches up from record low, hits 1.5% in August 2025

Inflation rose to 1.5% in August 2025 from a record low of 0.9% in July 2025, according to the Philippine Statistics Authority (PSA) on Friday, September 9.

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The PSA said that the uptrend was due to the annual increase in food and nonalcoholic beverages, which rose to 0.9% in August 2025 from 0.2% in July 2025.

Transport was recorded at -2.0% in August 2025, the same as in July 2025, the PSA said.

Core inflation, which does not include volatile commodities such as food and energy, increased to 2.7% in August 2025 from 2.3% in July 2025. The recent figure is a 0.1% increase from August 2024’s 2.6%.

As it stands, the Philippines’ year-on-year inflation rate for 2025 is currently at 1.7%, which is within the government's target of 2.0% to 4.0%.

METRO MANILA, OTHER AREAS

In terms of regions, the National Capital Region’s (NCR) inflation rate rose faster in August 2025, moving from 1.7% in July 2025 to 2.9%.