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The annual inflation rate in the Philippines rose to 1.5% in August 2025, surpassing market estimates of 1.3% and up from a more than five-and-a-half-year low of 0.9% in the previous month. The latest figure marked the highest reading since March, mainly driven by higher prices of food and non-alcoholic beverages (0.9% vs -0.2% in July), furnishings, household equipment and routine household maintenance (2.4% vs 2.1%), and health (2.9% vs 2.6%). Additionally, costs declined at a slower pace for transport (-0.3% vs -2%). On the other hand, inflation softened for clothing and footwear (1.7% vs 1.8%), housing and utilities (2.1% vs 2.2%), and education (2.9% vs 4.2%). On a monthly basis, consumer prices rose 0.6%, the strongest in three months, following a 0.3% gain in July. Meanwhile, core inflation, which excludes certain food and energy items, increased to 2.7%, the highest in eight months, from 2.3% in the preceding period.