At first I thought it was related to my theme, because I often edit in for various performance tweaks, but even changing through default WordPress themes the problem persisted and only one entry was showing in category although it obvously had more than one post in it.

So I started looking in my WordPress configuration and found that in Settings-> Reading sub panel it was an option called ” with value equal to 1. So I changed it to 5 and refreshed the category page. Sure enough it was it, now there was 5 entries displaying in my category.

So if someone else is experiencing this issue, at first check that parameter in your wordpress backend to save some time searching for problem in theme files.

By the way, the problem was on my other blog, but you can check some categories on this blog too :)