The Philippines sees a rise in inflation in August 2025, with prices increasing by 1.5% compared to the same month last year. This is a jump from 0.9% in July, mainly because food prices went up. Bad weather has affected food supplies, making things more expensive for consumers.
According to the Philippine Statistics Authority (PSA), the cost of food and non-alcoholic drinks increased by 0.9% in August. This was a reversal from a small 0.2% drop in July. This increase pushed overall inflation higher for the month.
Transport costs also contributed to the rising prices. The transport index only dropped by 0.3% in August 2025, compared to a 2% decline in July. Despite these changes, the average inflation rate from January to August 2025 is 1.7%. Last year, in August 2024, inflation was higher at 3.3%.
Core inflation, which excludes volatile food and energy prices, also rose slightly to 2.7% in August 2025. For comparison, it was 2.6% in August 2024.
Philippines’ economic planning head Arsenio Balisacan stressed the importance of keeping an eye on the weather forecast. Bad weather can directly impact farming and food production. The country’s weather bureau, PAGASA, warns that up to 15 tropical storms could hit the Philippines between September 2025 and February 2026.
On another note, the Philippines’ trade performance improved in July 2025. The total value of goods imported and exported increased by 7.7% to $18.72 billion. Imports made up about 61% of this, while exports accounted for 39%. However, the country still experienced a trade deficit of around $4.05 billion in July, meaning it imported more than it exported. The trade deficit has decreased by 17% compared to the previous year.
Overall, this data shows how weather impacts prices in the Philippines and highlights the country’s ongoing efforts to balance inflation and trade.
