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AUG INFLATION EASES TO 6.1%, BUT ANALYSTS WARY
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By Justine Xyrah Garcia
HE country’s headline inflation may be easing, but analysts warned that the slowdown remains fragile as elevated rice prices and a weakening peso threaten to keep price pressures high in the coming months.
‘Latest PHL peso slide to record low not so much from noise, but firm $’
19.4%
ECENT domestic political developments such as the reports regarding the arrest warrant for Vice President Sara Duterte may have had a hand in the short-term volatility of the Philippine peso, but the local currency’s slide to a fresh record low was driven mainly by the firm US dollar, according to a bank economist. “The peso’s slide to a fresh record low was driven mainly by external factors, including a firm US dollar, elevated US yields, and market caution ahead of the US nonfarm payrolls report,” Ruben Carlo Asuncion, chief economist at Union Bank of the Philippines (UBP), said on Friday.
On Friday, the Philippine Statistics Authority (PSA) reported that inflation eased to 6.1 percent in August from 6.2 percent in July. This marked the fourth straight month of slower inflation after it peaked at 7.2 percent in April. Average inflation from January to August stood at 5.2 percent. Despite the slowdown, inflation remains well above the Bangko Sentral ng Pilipinas’ (BSP) target range of 2 to 4 percent. PSA noted that rice remained the biggest individual contributor to August inflation, with its inflation rate accelerating to 19.4 percent from 17.1 percent in July. Rice alone contributed 1.3 percentage points to headline inflation. This was the highest rice inflation since July 2024, when it reached 20.9 percent.
By Andrea E. San Juan
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Rice inflation AUGUST 2026 from 17.1% in July
“I would not yet call this an established trend—it’s a lull that could reverse quickly if either rice supply or the peso deteriorates further.” —Leonardo A. Lanzona, Ateneo de Manila University economist, on the fragile easing in inflation
Ateneo de Manila University economist Leonardo A. Lanzona said the latest figures suggest that the easing in headline inflation is being driven by a few softer com-
See “Peso,” A2
See “Inflation,” A2
EXPANDED ACCESS TO QUALITY EDUCATION SIGNED INTO LAW By Jovee Marie N. dela Cruz, Samuel Medenilla & Claudeth MoconCiriaco
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RESIDENT Ferdinand Marcos said Friday disadvantaged learners may study for free in private schools and technical-vocational training institutions after he signed Republic Act 12325 amending the Universal Access to Quality Education. The new piece of legislation amended RA 10391 of 2017 and expanded its coverage so it will now not only provide free tuition for students in public colleges, universities, and technical-vocational institutions. It is among the 24 priority bills discussed during the fourth Legislative-Executive Development Advisory Council (Ledac) meeting last month. See “Education,” A2
2.6M Free Higher Education beneficiaries as of 1st semester 2026
EALA KEEPS HER EYES ON THE PRIZE Alex Eala, the No. 17 seed from
the Philippines, advanced to the third round of the US Open after defeating Oleksandra Oliynykova, 6-1, 6-4. Eala, who has drawn strong support from Filipino fans in New York, joined twotime champion Naomi Osaka and 2023 winner Coco Gauff in advancing to the weekend. Filipino supporters waved Philippine flags and “Laban Alex” signs as they cheered Eala’s run. Story on A12. TROI SANTOS
“Poor and deserving students taking priority programs who are not covered by existing grants may also receive government support to pursue their studies in qualified private higher education and technical-vocational institutions.”— Ferdinand Marcos Jr., on the expanded education assistance under RA 12325
ALL DRESSED UP Dogs in colorful costumes take part in the “Dog Pawshion Show” at the Senior Citizens’ Park & Community Pet Park at Plaza Azul in Pandacan, Manila, on Friday, September 4, 2026. The event promoted responsible pet ownership and community stewardship. AP/AARON FAVILA
‘Exports must be more competitive to ease pressure on the peso’
BSP still tracking risks from T ME war, weather disruptions By Andrea E. San Juan
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SEARCH FOR MISSING AETA BOY Botolan Municipal Disaster Risk Reduction and Management Office (MDRRMO) personnel scour the lahar field along the Bucao River in Botolan, Zambales, on September 3 for the body of a seven-year-old Aeta boy who was swept away by strong river currents two days earlier. The boy’s father, Simeon Candule, 35, also drowned when their carabao-drawn cart overturned while they were crossing the river in Barangay Malomboy. The boy’s body was later recovered near the Bucao River delta, about 15 kilometers from the accident site. The incident brought the storm-related death toll in Zambales to 14, all from drowning. Story on A4. BOTOLAN LGU
VEN as the Philippines’s headline inflation eased for the fourth straight month, the central bank said it is closely watching the impact of recent developments in the Middle East and weather-related disturbances. The Bangko Sentral ng Pilipinas (BSP) said this on Friday after the Philippine Statistics Authority (PSA) announced that overall inflation in the country eased to 6.1 percent in August 2026, from 6.2 percent in July 2026.
While lower food inflation led to the further easing of headline inflation, the central bank pointed out that average headline inflation for the first eight months of 2026 settled at 5.2 percent. This was still above the fullyear target of 3-percent and the tolerance range of plus or minus 1 percentage point. Meanwhile, core inflation, which excludes volatile food and energy items, likewise moderated from 4.2 percent in July to 4.1 percent in August, the central bank also noted. See “BSP,” A2
5.2% AVERAGE INFLATION JANUARY–AUGUST 2026
Despite headline inflation easing to 6.1% in August, the country’s average inflation for the first eight months of 2026 remained at 5.2%— above the Bangko Sentral ng Pilipinas’ 3% full-year target and its 2%-4% tolerance range.
HE Philippines needs to make its export sector more competitive to ease pressure on the peso and strengthen its ability to finance its growing import bill, Socioeconomic Planning Secretary Arsenio M. Balisacan said. Balisacan said the government needs to address structural constraints that have kept exports from keeping pace with imports, which has left the country vulnerable to peso depreciation. “What we are telegraphing is that we are addressing those structural issues that are constraining our ability to drive exports, to make our export sector more competitive so that we could finance our imports successfully,” Balisacan told reporters in a chance interview. See “Export,” A2
PESO EXCHANGE RATES n US 62.4940 n JAPAN 0.4010 n UK 84.5731 n HK 7.9712 n CHINA 9.3027 n SINGAPORE 49.3439 n AUSTRALIA 44.9832 n EU 72.6680 n KOREA 0.0461 n SAUDI ARABIA 16.6433 Source: BSP (September 4, 2026)