Inflation hits five-month high in August

Latest reading: Inflation came in at 1.5% in August, up from July’s 0.9%. August's result marked the highest inflation rate since March. Prices for food returned to growth after having declined in July. Moreover, price pressures for hospitality and healthcare picked up from the prior month, and transport costs fell less than in July. Annual average inflation fell to 1.9% in August (July: 2.1%). Finally, consumer prices increased a seasonally adjusted 0.52% from the previous month in August, accelerating from the 0.05% rise recorded in July. August's result was the highest reading since December 2024.

Panelist insight: EIU analysts said: “We forecast that inflation will moderate [in 2025 from 2024], supported in part by lower global oil and commodity prices. The government's decision to suspend rice imports until end-October, which coincides with the harvest season, will help to stabilise domestic rice prices. Still, it will take some time for consumers' expectations for inflation to re-anchor after an extended period of high price growth, and the cost of living will remain a major issue.”

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