Manila: The Bangko Sentral ng Pilipinas (BSP) has projected headline inflation to settle within the 5.5 percent to 6.5 percent range in August. The central bank's forecast is informed by several economic indicators and external factors that are likely to influence inflation rates for the month.

According to Philippines News Agency, the BSP stated that upward price pressures for August are expected to arise from increased prices of rice, vegetables, fruits, and fish. These price hikes are attributed mainly to unfavorable weather conditions and elevated domestic fuel costs. However, the BSP noted that these pressures could be countered by lower prices of meat, reduced electricity rates, and the appreciation of the peso.

The BSP emphasized its commitment to remaining vigilant and guided by incoming data, particularly concerning inflation and growth prospects. It also noted that it will continue to assess the impact of developments in the Middle East and recent weather disturbances on the country's inflation and economic outlook.

In July, headline inflation eased to 6.2 percent from 6.4 percent in June. The Philippine Statistics Authority is scheduled to release the August 2026 inflation data on September 4.