The Philippine Statistics Authority (PSA) reported Thursday that August inflation fell to 3.3 percent from 4.4 percent in July.

This decline brings the average inflation rate to 3.6 percent, within the government’s target range of 2 to 4 percent.

The slowdown was primarily driven by a decrease in food inflation, which fell to 4.2 percent from 6.7 percent the previous month.

This reduction is largely attributed to a significant decline in rice inflation, which decreased to 14.7 percent from 20.9 percent in the prior month.

“Low-income households will benefit from the decline in food inflation, as food constitutes more than half (51.4 percent) of the consumption of the bottom 30 percent of households,” NEDA Secretary Arsenio Balisacan said.

“Moreover, as businesses have identified persistent inflationary pressure as a significant concern, the recent stability and moderation in inflation will encourage investments, especially as borrowing costs are declining. Most importantly, the appetite for business expansion will improve as consumer spending increases,” the government’s chief economic planner added.

Balisacan also said that while inflation continues to trend downward, primarily due to reduced import tariffs on rice, potential pressures could emerge from higher electricity rates and above-normal weather disturbances. NEDA Public Affairs