Philippines Inflation Rate Slows to 6.2%

The annual inflation rate in the Philippines eased to 6.2% in July 2026, exceeding expectations of a decline to 6.3% and down from 6.4% in June. Transport inflation decelerated to 11.9% from 12.8%, as fuel price pressures eased. Price growth also moderated for education services (1.9% vs. 4.0%) and restaurants and accommodation services (6.8% vs. 7.0%), while food and non-alcoholic beverage inflation remained unchanged at 5.2%. Meanwhile, inflation accelerated for housing, water, electricity, gas and other fuels (8.2% vs. 8.1%), furnishings and household equipment (3.9% vs. 3.7%), health (4.8% vs. 4.6%), recreation and culture (5.3% vs. 5.2%), and personal care and miscellaneous goods and services (3.8% vs. 3.7%). On a monthly basis, the CPI increased 0.1%, following a 0.2% decline in June. Annual core inflation slowed to 4.2% from 4.4% in June. Average inflation stood at 5% from January to July, remaining above the government’s 2%-4% target range.

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.

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.