Inflation in the Philippines continued to ease in August, dipping slightly to 6.1% from 6.2% in July 2026. The decline was modest, but it brought some relief as slower price increases were recorded in key areas such as food, housing and utilities, and education services.
Food inflation fell to 4.6% from 5.2% in July, while inflation for housing and utilities eased to 7.9% from 8.2%. Inflation in education services also slowed, declining to 1.7% from 2%.
Despite the slight improvement, prices remain significantly higher than they were a year ago. Average inflation for the first eight months of 2026 reached 5.2%, compared with just 1.5% in August 2025.
While inflation eased only slightly, weaker employment figures in July point to continued pressure on Filipino households.
The number of unemployed Filipinos rose to 3.14 million, equivalent to an unemployment rate of 6%. This was the highest number of jobless Filipinos recorded since December 2021, when 3.284 million were unemployed amid lingering COVID-19 restrictions.
One factor behind the increase was the growing number of young Filipinos entering the labor market. Around 1.33 million Filipinos aged 15 to 24 joined the labor force in July, expanding the pool of workers faster than the number of available jobs.
The number of underemployed Filipinos also increased to 6.33 million from 6.11 million in June, although it remained lower than the 6.80 million recorded a year earlier. Meanwhile, the number of employed Filipinos fell to 49.21 million from 50.66 million in June.
These figures suggest that inflation is easing, but income security is becoming less certain.
For households, this can mean having to make tougher choices. Even if prices are rising slightly more slowly, families facing unemployment or fewer work opportunities may have less money to spend.
For retailers, this could translate into more selective shoppers—consumers prioritizing necessities, comparing prices more carefully, and potentially leaving stores with smaller baskets.
When income becomes uncertain, every item in the basket has to earn its place.
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