Philippine Inflation Eases to 6.2% in July

MANILA, Philippines — The Philippine headline inflation rate fell to 6.2% in July, marking its lowest level since March this year. The Philippine Statistics Authority (PSA) announced on Wednesday, August 5, that the inflation rate declined further from 6.4% in June and 6.8% in May, indicating a continuous decline for three consecutive months. The PSA’s official rate is within the Bangko Sentral ng Pilipinas’ July inflation forecast of 5.6% to 6.6%. July’s rate brings the 2026 year-on-year national inflation rate to 5%. The agency attributed the slowdown to easing costs in transport, education services, and restaurants and accommodation services. The annual increase in the transport index slowed from 12.8% in June to 11.9% in July. Slower annual growth rates were also recorded for education services, from 4% in the previous month to 1.9%, and for restaurants and accommodation services, from 7% in June to 6.8% in July. The three main contributors to July’s inflation were food and non-alcoholic beverages, with a 32.1% share; housing, water, electricity, gas, and other fuels, with a 26.8% share; and transport, with a 17.4% share. Meanwhile, food inflation at the national level held steady at 5.3%. Core inflation, which excludes food and energy items, went down to 4.2%. A slower inflation rate of 4.4% was also recorded in the National Capital Region in July, down from 4.9% in June. Inflation also eased in areas outside the NCR, from 6.8% to 6.7%. Ten regions, meanwhile, logged higher inflation rates, with the highest at 8.7% in Region VII (Central Visayas). Region I (Ilocos Region) recorded the lowest inflation rate at 5.1%.