Year-on-Year Inflation
Year-on-Year (Y-o-Y) inflation for July, August and September 2026, as measured by the Producer Price Index (PPI), stood at 2.40 percent, 1.21 percent, and 2.68 percent, respectively. This corresponds to an average annual increase of 2.10 percent in the third quarter of 2026 compared to the same quarter of the previous year.
In the third quarter of 2026, the Forestry & Logging, Transport, Manufacturing and Information & Communication sectors were the major contributors to the rise in overall inflation. The Transport sector experienced significant price increases, registering an average of 6.97 percent. This increase was primarily driven by public transport and postal services, both domestically and internationally.
The Forestry & Logging sector recorded a consistent Year-on-Year inflation rate of 5.14 percent during the quarter. This increase is largely attributed to the revision of Natural Resources Pricing Rates that took effect on 1st October 2025, which continued to exert upward pressure on producer prices within the forest sector.
The Manufacturing sector posted Y-o-Y inflation of 5.17 percent, 1.93 percent and 4.09 percent across the three months, primarily due to price increases in the manufacture of food products, beverages, non-metallic mineral products, chemical & chemical products, and basic metals.
On the other hand, the Electricity sector exerted downward pressure on overall inflation, recording Year-on-Year price declines of 3.46 percent throughout the quarter mainly driven by reductions in energy charges.
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