Philippine inflation cools to 6.1% as rice prices keep soaring

Philippine headline inflation eased for the fourth consecutive month to 6.1 percent in August from 6.2 percent in July, but remained well above the Bangko Sentral ng Pilipinas’ 2-to-4 percent target range; year-to-date inflation reached 5.2 percent. Slower food inflation, particularly for vegetables and fish, along with moderating housing and electricity costs, drove the decline, while core inflation edged down to 4.1 percent. Rice prices continued to rise sharply, with rice inflation reaching 19.4 percent, and transport inflation accelerated to 13.5 percent as higher global oil prices pushed up gasoline and diesel costs. Inflation for the lowest 30 percent of households remained considerably higher at 8.2 percent, underscoring continued pressure on vulnerable families. In Central Visayas, inflation also eased to 8.1 percent from 8.7 percent, although the region remained above the national rate as lower food inflation offset rising transport, housing and health costs.