T&S Asset Management

PH · Country summary

Philippines

Last updated: 28 Sep 2026

Inflation was 6.1% in August and unemployment 6.0% in July; banks' consumer-loan NPL ratio rose to 5.49% as consumer loan growth slowed to 17.1%.

Methodology: sources, verification and definitions →

Key indicators and definitions

Each value is shown with its definition, scope, basis date and source. Different compilers use different definitions; compare like with like.
IndicatorValueDefinition and scopeBasis dateSourceDefinition and source
Headline CPI inflation (PSA)6.1%down from 6.2% in July; fourth consecutive monthly slowdownYear-on-year change in the consumer price indexPhilippines, national31 Aug 2026GMA News: Inflation slows down for fourth straight month at 6.1% in August
Definition and source

Year-on-year change in the consumer price index

Scope: Philippines, national

Source: GMA News: Inflation slows down for fourth straight month at 6.1% in August

Unemployment rate (PSA)6.0%
Labor Force Survey.
up from 5.3% in July 2025
Unemployed persons as a share of the labour forcePhilippines, national31 Jul 2026PSA: Number of Employed Persons Rose to 49.21 Million as Underemployment Declined in July 2026
Definition and source

Unemployed persons as a share of the labour force

Scope: Philippines, national

Source: PSA: Number of Employed Persons Rose to 49.21 Million as Underemployment Declined in July 2026

Consumer loan growth17.1%down from 17.8% in June; eleventh consecutive monthly slowdownYear-on-year growth of outstanding household (consumer) loansUniversal and commercial banks31 Jul 2026Philstar: Credit growth rebounds to 2-month high in July
Definition and source

Year-on-year growth of outstanding household (consumer) loans

Scope: Universal and commercial banks

Source: Philstar: Credit growth rebounds to 2-month high in July

Consumer loan NPL ratio5.49%up from 5.44% in JuneNon-performing consumer loans as a share of consumer loans (BSP data)Philippine banking system31 Jul 2026Inquirer: Bad loans up amid continuing consumer strain (2026-09-09)
Definition and source

Non-performing consumer loans as a share of consumer loans (BSP data)

Scope: Philippine banking system

Source: Inquirer: Bad loans up amid continuing consumer strain (2026-09-09)

Latest T&S View

2026-09-28

T&S View: In Philippine household credit, check quality before chasing the demand rebound

  • Consumer confidence has improved, but unemployment and the consumer-loan NPL ratio have risen.
  • In our view, as growth slows, arrears on earlier lending tend to surface as higher ratios.
  • We believe lenders should review underwriting and collections before responding to a demand recovery.

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