The Philippines’ headline inflation rate decelerated to 6.8 percent in May 2026 from 7.2 percent in April, driven by cooling prices in transportation, food, and energy sectors, the Philippine Statistics Authority (PSA) reported on Friday.
The latest figure settled below the Bangko Sentral ng Pilipinas’ forecast window of 7.1 percent to 7.9 percent, marking a 0.4 percentage-point drop from the prior month.
At a press conference, National Statistician and PSA Chief Claire Dennis Mapa identified tapering price pressures within the transport sector as the primary driver behind the decline.
“Ang pangunahing dahilan ng mas mababang antas ng inflation sa Mayo kumpara noong Abril 2026 ay ang mas mabagal na pagtaas ng presyo ng transport na may 16.2% inflation rate,” Mapa said.
The transport sector was responsible for 70.3 percent of the total month-on-month inflation drop.
According to PSA metrics, stabilizing fuel prices largely propelled this moderation, with diesel inflation registering at 58.5 percent and gasoline inflation pinning at 51.6 percent for the month.
Additionally, the food and non-alcoholic beverages segment significantly aided the downtrend, posting a 5.7 percent inflation rate and serving as another major deflationary factor.
“Ang pangalawang dahilan ng mas mababang antas ng inflation itong Mayo ay ang mas mabagal ng pagbaba ng presyo ng food and non-alcoholic beverages na may 5.7% inflation rate. Ito ay may 16.9% share sa pagbaba ng pangkalatang inflation sa bansa,” Mapa added.
Even with the recorded deceleration, elevated fuel and food expenses continue to stretch domestic household budgets.
By comparison, inflation stood at 7.2 percent in April 2026, while a much lower 1.3 percent rate was logged in May 2025.
The year-to-date average inflation rate for the first five months of 2026 now rests at 4.5 percent.
The PSA maintained that it will keep a close eye on price adjustments across key commodities as state economic managers and fiscal policymakers assess inflation trajectories for the rest of the year.