The country's headline inflation rate slowed down for the fourth straight month as it eased to 6.1 percent in August but remained far from this year's government target 2 to 4 percent.

The year-to-date average inflation rate is now at 5.2 percent which is still higher than this year's target.

In a press briefing, Economy, Planning and Development Undersecretary and National Statistician Claire Dennis Mapa said the main sources of deceleration in August compared to July is the slower inflation in the price of food and non-alcoholic beverages with 4.6 percent inflation rate.

However, Mapa added that rice is still the top contributor of inflation in August with a rate of 19.4 percent from 17.1 percent in July.

Mapa said the 19.4 percent inflation rate in rice is the highest since July of 2024 when the rice inflation was at 20.9 percent.

"Food is 34.78 percent or around 35 percent of the headline inflation or the overall basket and rice is 8.9 percent or close to 9 percentage point of the 35 percent, so the 19.4 percent inflation for rice in August contributed the 79 percent of our average food inflation which is 4.6 percent," he explained.

"In terms of percentage point... food inflation at the national level is at 4.6 percent and the contribution of rice there is 3.6 percentage point, the remaining one percentage point is divided into other commodities," he added.

In a statement, Economy, Planning, and Development Secretary Arsenio Balisacan said that "while the overall figure remained stable, the moderation in key drivers such as food inflation gives us confidence that we are moving in the right direction."

"Our priority is to strengthen the foundations of long-term price stability through improved food security, more efficient logistics, and targeted support for vulnerable sectors,” the chief economist said.

“These are not short-term fixes; they are investments in a more resilient economy capable of withstanding future disruptions," he added. Robina Asido/PHS