Philippines Inflation Unexpectedly Slows in May

The annual inflation rate in the Philippines eased to 6.8% in May 2026 from a three-year high of 7.2% in April, defying expectations of an increase to 7.5%. Transport inflation slowed to 16.2% from 21.4% in April, helped by a rollback in fuel prices later in the month. Still, it remained the largest contributor among all categories. Price growth also eased in food and non-alcoholic beverages (5.7% vs 6.0%) and housing, water, electricity, gas and other fuels (7.8% vs 8.2%). In contrast, inflation accelerated in clothing and footwear (3.0% vs 2.8%), furnishings and household maintenance (3.9% vs 3.5%), health (4.1% vs 3.8%), recreation and culture (5.2% vs 4.9%), and restaurants and accommodation services (6.7% vs 6.0%). On a monthly basis, the CPI fell 0.5%, the first decline in a year and against forecasts of a 0.2% gain. Meanwhile, annual core inflation jumped to 4.1%, slightly below forecasts of 4.2%, but marking the highest reading since December 2023.

The annual inflation rate in the Philippines jumped to 7.2% in April 2026 from 4.1% in March, marking the highest level since March 2023, and well above expectations of a 5.5% rise. This was also faster than the central bank’s inflation forecast of 5.6%–6.4%, as fuel prices saw some of their largest increases in the first two weeks of April, linked to the Iran conflict, before being rolled back later in the month. Transport inflation surged to 21.4% in April, significantly higher than 9.9% in March. Price growth also picked up across all components, including food and non-alcoholic beverages (6.0% vs 2.9%), housing and utilities (8.2% vs 4.7%), and furnishings, household equipment, and routine household maintenance (3.5% vs 3.1%). On a monthly basis, the CPI climbed 2.6%, the largest increase since January 1996, accelerating from a 1.4% gain in March and defying forecasts of a 1% rise. Meanwhile, annual core inflation also rose to 3.9%, the highest reading since December 2023.

The annual inflation rate in the Philippines climbed to 4.1% in March 2026, the highest level since July 2024, and well above 2.4% in February. The reading also exceeded expectations of 3.6% and surpassed the central bank’s 2–4% target, as well as its 3.1%–3.9% projection for March, driven by oil price shocks and unprecedented local currency depreciation. Transportation costs saw the largest surge, rising 9.9% (vs -0.3% in February), fueled by gasoline and diesel price spikes of 27.3% and 59.5%, respectively, which accounted for 54.8% of the overall inflation acceleration. Prices rose across nearly all subcategories, including food and non-alcoholic beverages (3% vs 1.8%), housing and utilities (4.5% vs 3.5%), clothing and footwear (2.6% vs 2.4%), and furnishings (3.1% vs 2.9%). On a monthly basis, the CPI jumped 1.4%, the largest gain since January 2023, well above February’s 0.2% rise. Meanwhile, annual core inflation also rose to 3.2%, the highest reading since April 2024.