Philippines Inflation Cools to 6.2% in July; Gov't Continues Price Stabilization Measures

The country’s inflation rate slowed down further for the third straight month in July 2026 amid improved fuel supply conditions during the period, when the Middle East conflict was waning. At a press briefing on Wednesday, National Statistician and Philippine Statistics Authority (PSA) chief Claire Dennis Mapa said inflation — the rate of increase in the prices of goods and services — slowed down 6.2% last month from 6.4% in June 2026. July’s inflation print brought the year-to-date rate to 5%, still above the government’s comfortable ceiling of 2% to 4%. Mapa said the main contributor to the downtrend was the slower increase in the Transport index at 11.9% from 12.8% month-on-month. “Ito [Transport] ay may 57.4% share sa pagbaba ng pangkalahatang inflation sa bansa (It had a share of 57.4% to the overall deceleration of the country’s inflation),” the PSA chief said. This as inflation for gasoline and other passenger transport by road slowed down to 34.1% from 39.2% and 5.3% from 5.4%, respectively. Meanwhile, food inflation was steady at 5.3%, as lower meat prices and slower increases in vegetable prices offset sharper rice inflation. “Every peso saved from slower price increases means more room for the family budget for food, transport, education and other essential needs,” Department of Economy, Planning and Development (DEPDev) Secretary Arsenio Balisacan said in a statement. “While challenges remain, particularly in managing food price pressures, these results show that our interventions are making a difference in easing the impact on Filipino households,” Balisacan said. The DEPDev chief the government’s UPLIFT Committee will continue implementing targeted interventions to protect vulnerable sectors from the effects of higher prices and other economic shocks. Among the measures supporting price stability are government assistance programs for the transport sector, according to the country’s chief economist. As of July 24, 2026, P2.09 billion, or 84% of the P2.5-billion Fuel Subsidy Program, had been disbursed to benefit 498,570 public utility vehicles, while P356.1 million in fuel assistance had been provided to 89,551 PUV drivers under the P10-per-liter Fuel Subsidy Program To strengthen food security and improve the domestic food supply chains, the DEPDev chief said the Department of Agriculture (DA) is also set to complete 380 mechanical drying systems by 2027, expanding post-harvest capacity to reduce grain losses, improve rice quality, raise farmers’ incomes, and strengthen domestic rice supply. To further safeguard food supply against climate-related risks, the government will intensify the distribution of seed and fertilizer in water-abundant rice-growing areas in Southern Luzon, Visayas, and Mindanao, while continuing support for drought-affected farmers to minimize production losses, according to Balisacan. In the long term, the country’s chief economist said the government is advancing power sector reforms in line with the Philippine Energy Plan 2023–2050. “These efforts aim to reduce reliance on imported fuels by accelerating the implementation of renewable energy contracts and ensuring the full delivery of awarded capacity. These measures support the target of adding 25 gigawatts of renewable energy capacity by 2035,” he said. “While inflation is moving in the right direction, our work is far from over. We will continue advancing measures to keep essential goods affordable while creating more opportunities for a better quality of life,” he said. At a Palace press briefing, Presidential Communications Undersecretary Claire Castro said July’s inflation slowdown indicate that the rise in prices are already moderating. “Magandang balita ang mga positibong pagbabagong ito, ngunit nananatili nakamonitor ang administrasyon dahil nandyan pa rin (ang) tensyon sa pulitika sa Gitnang Silangan, at ang epekto ng El Niño ay patuloy na nagbabanta sa presyo ng pagkain at enerhiya,” said Castro. (These positive developments are a good news, but the administration will continue to monitor the situation since there are still lingering tensions in the Middle East and the effects of El Niño continue to threaten prices of food and energy.) “Kaya naman patuloy na ipinapatupad ng pamahalaan ang mga tiyak na hakbang upang protektahan ang mga pamilyang Pilipino at panatilihing abot-kaya ang mga bilihin. Malawakan pa rin ang ating layunin: pababaan ang gastusin sa araw-araw, patibayin ang seguridad sa pagkain at enerhiya, protektahan ang kakayahang bumili ng mga pamilyang Pilipino, at panatilihin ang paglago ng ekonomiya na pakikinabangan ng bawat tahanan,” she said. (That is why the government continues to implement targeted measures to protect Filipino families and keep goods affordable. Our overall goal remains the same: lower everyday expenses, strengthen food and energy security, protect the purchasing power of Filipino families, and sustain economic growth that will benefit every household.) —VAL/RSJ, GMA News