Inflation in the Philippines decelerated to 6.4% in June 2026 from 6.8% in May, driven by slower increases in transport and food prices. The year-to-date average remains above the government's target range. Government measures and easing global oil prices contribute to the downtrend, with focus on food security and strategic reserves to ensure stability.
The country's inflation rate decelerated for a second consecutive month in June 2026, primarily due to moderating fuel prices amid waning tensions in the Middle East.
National Statistician and Philippine Statistics Authority (PSA) chief Claire Dennis Mapa announced that inflation slowed to 6.4% in June from 6.8% in May 2026. This brings the year-to-date average to 4.8%, which remains above the government's target range of 2% to 4%. The main driver of the slowdown was the Transport sector, where inflation eased to 12.8% from a higher rate the previous month, reflecting tempered increases in gasoline and diesel prices.
Additionally, the Food and Non-Alcoholic Beverages index grew at a slower pace, with notable declines in the prices of meat, cereals, and fish compared to May. The Department of Economy, Planning, and Development (DEPDev) also cited easing oil price pressures and ongoing government interventions, such as targeted assistance for vulnerable sectors and the lifting of toll fees for agricultural transport, as contributing factors.
DEPDev Secretary Arsenio Balisacan emphasized that every reduction in inflation helps Filipino households, especially the poor, who allocate a large portion of their income to food and transport. He highlighted the implementation of the El Niño Food Security Action Plan, with a budget of P26.13 billion, to bolster resilience against weather-related supply disruptions.
Furthermore, the Philippines is partnering with Japan to establish a national strategic petroleum reserve to mitigate the impact of geopolitical shocks and extreme price volatility. The government's long-term goal is to achieve low and stable inflation by strengthening food production, supply chains, and climate resilience, thereby enabling families to plan and prosper with greater confidence
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