The Philippines’ annual inflation rate eased to 6.1% in August 2026 from 6.2% in July, but exceeded the 6% expected by economists. Food and non-alcoholic beverage inflation slowed to 4.6% from 5.2%, mainly as prices for vegetables, tubers, plantains, cooking bananas and pulses declined. Housing and utilities inflation also moderated, to 7.9% from 8.2%. Transport inflation moved in the opposite direction, rising to 13.5% from 11.9% after renewed fuel price increases in the second half of August. Inflation also accelerated for alcoholic beverages and tobacco, furnishings and household equipment, and health. Consumer prices rose 0.6% month-on-month, the fastest increase since April, following a 0.1% gain in July and exceeding the 0.5% forecast. Core inflation (underlying price growth excluding volatile items) eased to 4.1% from 4.2%, matching expectations. Average inflation from January to August was 5.2%, above the government’s 2%-4% target range.