Headline inflation increased from 1.1 percent in July to 1.4 percent in August 2025, remaining below the medium-term objective range of 3 – 6 percent, and was significantly lower than the 3.9 percent recorded in August 2024. The increase in inflation between July and August 2025 was mainly due to the acceleration in the annual price changes of some categories of goods and services, notably Food & Non-Alcoholic Beverages and Transport. This is possibly on account of price pressures from the recent adjustment of exchange rate parameters. Similarly, the 16 percent trimmed mean inflation and inflation excluding administered prices increased from 1.4 percent and 3.5 percent to 1.6 percent and 3.9 percent, respectively, between July and August 2025.
Inflation for domestic tradeables increased from 4 percent to 4.6 percent between July and August 2025, mainly due to the rise in the annual price changes of some food items in this category. Similarly, inflation for imported tradeables increased from 0.7 percent to 1.1 percent over the same period, mainly due to higher prices for most food items, influenced by adjustments in exchange rate parameters. As a result, all tradeables inflation increased from 1.6 percent to 2 percent between July and August 2025. Meanwhile, inflation for non-tradeables increased slightly from 0.3 percent to 0.4 percent in the same period.