Philippine inflation eased slightly to 6.1 percent in August from 6.2 percent in July, but faster rice price increases continued to put pressure on consumers.

The Philippine Statistics Authority (PSA) said the August inflation rate was mainly driven by food and non-alcoholic beverages, housing, water, electricity, gas and other fuels, and transport.

Food inflation slowed

Food inflation, however, slowed to 4.6 percent in August from 5.3 percent in July, with vegetable prices posting a 3.4-percent decline after rising 8.4 percent in the previous month.

National Statistician and Civil Registrar General Undersecretary Claire Dennis S. Mapa said the impact of recent natural disasters, particularly flooding, could still affect food prices in the coming months.

“Natural disasters like flooding have a direct effect on our food products, particularly vegetables. Although vegetable inflation was negative in August because some items recorded lower prices, there were also items that remained high. So, our expectation is that the movement could change in December,” Mapa said.

However, rice inflation accelerated

Despite the easing in overall food inflation, rice inflation accelerated to 19.4 percent in August from 17.1 percent in July, while inflation for corn and fish and seafood remained elevated at 18.2 percent and 6.6 percent, respectively.

Transport inflation also picked up sharply to 13.5 percent from 11.9 percent, offsetting some of the easing in food and housing-related prices.

Core inflation, which excludes selected volatile food and energy items, also eased to 4.1 percent from 4.2 percent in July.