Inflation in the Philippines slowed to 6.4% in June 2026, mainly due to lower fuel-related price increases, according to figures released by the Philippine Statistics Authority (PSA) on Tuesday.
The PSA said the easing was largely driven by slower growth in transport costs, while food prices also increased at a more moderate pace compared to the previous month.
“The downtrend in the overall inflation in June 2026 was primarily brought about by the slower annual increase in the transport index at 12.8% during the month from 16.2% in May 2026.”
Food inflation also eased to 5.4% in June from 5.8% in May.
The latest inflation rate falls within the Bangko Sentral ng Pilipinas’ (BSP) projected range of 6% to 7%, bringing the country’s average inflation for the first half of 2026 to 3.8%.
Meanwhile, core inflation, which excludes volatile food and energy prices, rose to 4.4% from 4.1% in May and remained higher than the 2.2% recorded in June 2025.
The Department of Economy Planning and Development (DEPDev) credited the slowdown to improving global market conditions and government measures aimed at easing price pressures. These include assistance for the transport, agriculture, and fisheries sectors, as well as the removal of toll fees for trucks transporting agricultural products.
DEPDev Secretary Arsenio Balisacan stressed that maintaining a steady food supply is key to keeping prices under control.
“If we want stable prices, we need a stable food supply.”
Balisacan also highlighted the importance of protecting the economy from climate-related risks, including El Niño, while noting that the government is working with Japan on plans to establish a strategic petroleum reserve.
“Our goal is not only to bring inflation down but to keep it low and stable. That requires stronger food production, more efficient supply chains, and greater resilience to climate and other shocks.”
Economists, including analysts from the Bank of the Philippine Islands (BPI), had expected inflation to slow in June due to the start of the rice harvest season and lower Dubai crude oil prices.
Although June’s inflation rate improved from 6.8% in May and 7.2% in April, it remains above the government’s target range of 2% to 4%.
Higher global oil prices, fueled by tensions involving the United States, Israel, and Iran earlier this year, continue to put pressure on inflation. While analysts expect fuel prices to gradually stabilize as oil shipments through the Strait of Hormuz normalize, they believe it may take time before prices return to pre-conflict levels.
In response to these conditions, the Development Budget Coordination Committee (DBCC) has maintained its average inflation forecast for 2026 at 6% to 7%.