Philippines Inflation Rate Cools to 6.4%

2026-07-07 01:31 By Kyrie Dichosa 1 min. read

The annual inflation rate in the Philippines eased to 6.4% in June 2026, a three-month low, from 6.8% in May.

Transport inflation slowed sharply to 12.8% from 16.2%, reflecting lower fuel price pressures, though it remained the largest contributor to overall inflation.

Inflation also eased for food and non-alcoholic beverages (5.2% vs. 5.7%) and furnishings and household equipment (3.7% vs. 3.9%).

Meanwhile, price growth accelerated for housing and utilities (8.0% vs. 7.8%), alcoholic beverages and tobacco (5.9% vs. 5.4%), health (4.6% vs. 4.1%), education services (3.9% vs. 2.9%), and restaurants and accommodation services (7.0% vs. 6.7%).

On a monthly basis, the CPI fell 0.3%, defying expectations of a 0.05% increase and following a 0.5% decline in May.

Meanwhile, annual core inflation accelerated to 4.4%, above both market forecasts and May's 4.1% reading, marking the highest level since December 2023.

Overall inflation remained above the government's 2% to 4% target range.



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Philippines Inflation Rate Cools to 6.4%
The annual inflation rate in the Philippines eased to 6.4% in June 2026, a three-month low, from 6.8% in May. Transport inflation slowed sharply to 12.8% from 16.2%, reflecting lower fuel price pressures, though it remained the largest contributor to overall inflation. Inflation also eased for food and non-alcoholic beverages (5.2% vs. 5.7%) and furnishings and household equipment (3.7% vs. 3.9%). Meanwhile, price growth accelerated for housing and utilities (8.0% vs. 7.8%), alcoholic beverages and tobacco (5.9% vs. 5.4%), health (4.6% vs. 4.1%), education services (3.9% vs. 2.9%), and restaurants and accommodation services (7.0% vs. 6.7%). On a monthly basis, the CPI fell 0.3%, defying expectations of a 0.05% increase and following a 0.5% decline in May. Meanwhile, annual core inflation accelerated to 4.4%, above both market forecasts and May's 4.1% reading, marking the highest level since December 2023. Overall inflation remained above the government's 2% to 4% target range.
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