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In August 2025, East Timor experienced a rise in its annual inflation rate to 0.6%, up from 0.3% in July. This represents the highest rate since March. Contributing to this increase were the accelerated price hikes in both the food and non-alcoholic beverages category, which saw a rise to 1.6% from 1.1%, as well as in furnishings, household equipment, and routine household maintenance, which increased to 1% from 0.8%. Meanwhile, prices for housing remained constant at 0.4%, transport at -1%, health at 0%, communication at -1.1%, as well as recreation and culture, and education both holding steady at 0.4%. There was, however, a moderated increase in costs for clothing and footwear, nudging down slightly to 0.4% from 0.5%. Conversely, deflation intensified marginally in the alcohol and tobacco sector, moving to -3.3% from -3.2%. On a month-to-month basis, consumer prices remained unchanged at 0.2% in August, consistent with the rate in July.