MANILA, Sept 5 — Philippine annual inflation quickened to 1.5 per cent in August from the prior month's 0.9 per cent rate, reflecting increases in the costs of housing, utilities and food, and drinks, the statistics agency said today.
The latest inflation print was above the 1.3 per cent forecast in a Reuters poll and the fastest rate since March. It brought the year-to-date average to 1.7 per cent, below the central bank's 2.0 per cent to 4.0 per cent target range for the year.
A sharp rebound in vegetable prices, which surged 10 per cent in August after a 4.7 per cent decline in July, was a key contributor to the uptick, the agency said. That outweighed a faster annual decline in the cost of rice.
Core inflation, which excludes volatile food and energy prices, climbed to 2.7 per cent in August from 2.3 per cent in July.
The central bank is forecasting inflation will average 1.7 per cent this year, before rising to 3.3 per cent in 2026 and 3.4 per cent in 2027.
Last week, the central bank cut its key policy rate for a third straight time and signalled that its easing cycle is nearing an end.
"Inflation expectations .... remain firmly anchored to the target," the Bangko Sentral ng Pilipinas said in a statement, while cautioning that potential electricity rate adjustments and higher rice tariffs pose risks to the outlook for inflation.
