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Saturday, August 29, 2026 Vol. 21 No. 319
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BSP FORECASTS 5.5-6.5% INFLATION FOR AUGUST HE Central Bank is looking at a 5.5 to 6.5 percent inflation forecast range for August as it gauges how recent weather disturbances alongside the elevated fuel costs weighed on the prices of food. In a statement on Friday, the Bangko Sentral ng Pilipinas (BSP) said it projects August 2026 inflation to settle within the range of 5.5 to 6.5 percent. “Upward price pressures for the month are likely to be driven by higher rice, vegetable, fruit, and fish prices, partly due to unfavorable weather conditions, and elevated domestic fuel costs,” the BSP said. However, the central bank explained that upward pressures are expected to be mitigated by lower prices of meat, as well as lower electricity rates and the peso appreciation. For this year, this is the third straight month that the central bank pegged a wider-than-usual
month-ahead inflation forecast range, with the lower and upper bound of the range having a 1-percentage-point difference. Should inflation in August hit the lower end of the range or 5.5 percent, it would mean that the increase in the prices of goods and services eased to the slowest in five months or since March 2026. However, if inflation shoots up to the upper end of the Central Bank’s forecast range at 6.5 percent, this would have marked the end of inflation’s downtrend, particularly the highest reading in three months or since May 2026 when inflation was at 6.8 percent. Moving forward, the central bank said it “will remain vigilant See “Inflation,” A2
July trade gap widens further to $5.97B as imports grow twice as fast as exports JULY TRADE DEFICIT +34.9% year-on-year July 2026 Imports Exports Trade gap
Value $14.12B $8.15B $5.97B
By Justine Xyrah Garcia
T
FOOD PRICES IN FOCUS Various vegetables are displayed for sale along Hidalgo Street in Manila. Food prices are again in focus as the Bangko Sentral ng Pilipinas (BSP) projects August 2026 inflation at 5.5 percent to 6.5 percent, citing higher prices of rice, vegetables, fruits and fish, partly due to unfavorable weather conditions, alongside elevated domestic fuel costs. The BSP said these upward pressures could be partly offset by lower meat prices, electricity rates and the peso’s appreciation. NONIE REYES
BM Graphics: Ed Davad / Source: PSA
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By Andrea E. San Juan
HE country’s trade deficit widened further in July as imports continued to grow nearly twice as fast as exports, according to the Philippine Statistics Authority (PSA). The PSA on Friday reported that the country’s trade deficit reached $5.97 billion in July, 34.9 percent higher than the $4.43 billion recorded a year earlier. The latest reading was
also the largest deficit since May 2026, when the trade gap reached $6.10 billion. The wider trade gap came as import payments increased 19.8 percent year-on-year to $14.12 billion from $11.79 billion, while export receipts grew 10.8 percent to $8.15 billion from $7.36 billion. Overall, the country’s total external trade in goods reached $22.27 billion in July, up 16.3 percent from $19.14 billion a year earlier. See “Trade,” A2
SBITC to collect wharfage fees for govt at Subic Port By Henry Empeño
S
UBIC BAY FREEPORT— Port terminal operator Subic Bay International Terminal Corporation (SBITC) has been authorized by the Subic Bay Metropolitan Authority (SBMA) to collect wharfage fees from port clients on behalf of the government, the Subic agency belatedly announced on Thursday, August 27. The new arrangement, the SBMA said, was formalized through a memorandum of agreement (MOA) signed by the two parties on July 29 to streamline payment processes through SBITC’s online payment platforms. SBMA Chairman and Administrator Eduardo Jose L. Aliño said the new arrangement will minimize face-to-face interactions, eliminate the need for clients to travel to the SBMA cashier’s office, and reduce waiting times for fee processing.
A NEW WAY TO PAY AT SUBIC PORT SBITC has been authorized by the SBMA to collect wharfage fees from port clients on behalf of the government, with payments to be processed through SBITC’s online platforms. The arrangement is intended to cut face-to-face transactions, reduce waiting time and simplify doing business at the Port of Subic. SBMA PHOTO
“Ultimately, it simplifies doing business at the Port of Subic,” Aliño pointed out. SBITC, through its Head of Management Services and Government Affairs Henry Dungca, said that under the agreement, it will ensure transparent, accountable remittances of the wharfage fees collected on behalf of the SBMA. “This partnership goes beyond payment collection,” Dungca said. “It enhances service speed, simplifies procedures, and improves the overall experience for all port users.” SBITC, a subsidiary of global port management firm International Container Terminal Services, Inc. (ICTSI), manages Subic’s New Container Terminals (NCT-1 and NCT-2), which serve as the primary gateway for international trade and containerized See “Subic,” A2
pushes digital trail DTI settles ₧4-B old car incentives MAP for every peso in budget
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HE government is settling billions of pesos in unpaid automotive incentives before rolling out a new program aimed at strengthening the local industry, with the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) initiative now down to its final steps, Trade Secretary Ma. Cristina Roque has said. Roque said the government has already released more than P4 billion in incentives under the Comprehensive Automotive Resurgence Strategy (CARS), covering payments to participating automakers and small and medi-
um-sized parts manufacturers. “That’s the total. Including the small and medium enterprises. Yes, the parts makers,” Roque told reporters on the sidelines of a Department of Trade and Industry (DTI) event on Wednesday. The release covers the incentives owed under the CARS program, including the obligations that had been raised during congressional budget deliberations. During the congressional budget hearing on Tuesday, Cagayan de Oro City 2nd District Rep. Rufus Rodriguez had raised the government’s reported P1.5billion obligation to Toyota Motor Philippines Corp. See “CARS,” A2
₧4B+
BM Graphics: Ed Davad / Source: DTI
By Bless Aubrey Ogerio
→CARS INCENTIVES RELEASED
Clearing old obligations paves the way for RACE, the government’s next automotive industry incentive program
FROM OLD TO NEW CARS
Comprehensive Automotive Resurgence Strategy →Old incentives / arrears being settled
RACE
tio
n
a Revitalizing the Automotive Infl Industry for Competitiveness Enhancement → New automotive industry incentive framework
By Bless Aubrey Ogerio
T
HE Management Association of the Philippines (MAP) is pushing for a digital system that allows the public to track government money from the time it is appropriated to when it is actually spent, as scrutiny over the use of public funds intensifies ahead of the 2027 national budget. The business group said the Executive, Congress and government agencies involved in preparing, approving and implementing the 2027 National Budget should adopt end-to-end digital transparency measures, including reforms
“The complexity of the budget process must never become a shield against public scrutiny or accountability.” —Management Association of the Philippines
embodied in the proposed Citizen Access and Disclosure of Expenditures for National Accountability (Cadena). Cadena and similar measures seek to make government spending more transparent, traceable and resistant to tampering, MAP said. “The technology to do this already exists. What is required is the political will to make transparency the rule rather than the exSee “MAP,” A2
PESO EXCHANGE RATES n US 61.7640 n JAPAN 0.3876 n UK 84.0423 n HK 7.8799 n CHINA 9.1911 n SINGAPORE 48.6178 n AUSTRALIA 44.4330 n EU 71.9859 n KOREA 0.0448 n SAUDI ARABIA 16.4507 Source: BSP (August 28, 2026)