Inflation Cools to 6.3% in August, Offering Some Reprieve to Consumers

Inflation cooled in August to 6.3% after accelerating for five straight months, offering a reprieve to households burdened with soaring prices of basic goods and oil.

Lower transportation costs and food prices slowed inflation to 6.3% from 6.4% in July, the Philippine Statistics Authority said Tuesday.

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Transport inflation was lower in August at 14.6% from 18.1% the previous month. Cheaper produce particularly vegetables, tubers, and bananas meanwhile were the main drivers of slowing food inflation which slid to 6.5% in August from 7.1% in July according to the PSA.

Setting aside food and fuel costs, the consumer price index climbed to 4.6% from 3.9% the previous month, and 2.8% in the same period last year.

Finance Sec. Benjamin Diokno previously said that inflation likely peaked in July but Bangko Sentral ng Pilipinas Governor Felipe Medalla said the consumer price index would likely keep on accelerating and could peak either by October or November. 

The BSP last month raised the benchmark interest rate, used by banks to price their loans, to 3.75% following an off-cycle increase of 75 basis points in July.

READ: BSP Raises Benchmark Interest Rates to 3.75% to Combat Inflation