Inflation Slows in Philippines and Canada Amid Cost Pressures

Inflation rates decreased in both the Philippines and Canada by August 2026, though the drivers of these trends differ by region. In the Philippines, inflation dropped to 6.2 percent in July, primarily due to declining fuel and transport costs. However, rice inflation surged to 17.1 percent, prompting the Department of Agriculture of the Philippines to plan the completion of 380 mechanical dryers by 2027 to improve food security.

To manage costs, the Philippine government provided fuel subsidies for nearly 500,000 public utility vehicles. Socioeconomic Planning Secretary Arsenio Balisacan noted that interventions are easing the impact on households, while Palace Communications Undersecretary Claire Castro emphasized that the administration remains vigilant regarding El Niño and Middle East tensions.

In Canada, inflation fell to 2.7 percent in June 2026, down from a 2022 peak of 8 percent. Canadian pressures were largely driven by population-led housing shortages and the impact of the Russian invasion of Ukraine on energy and fertilizer markets. The Treasury Board of Canada has responded with tax changes, funding for greenhouse production, and efforts to reduce development charges to increase the housing supply.