Inflation slows to 6.2% in July 2026 as transport, services ease

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Headline inflation in the Philippines slowed to 6.2 percent in July from 6.4 percent in June, driven mainly by slower price increases in transport and selected services, according to the Bangko Sentral ng Pilipinas (BSP).

The BSP said the July inflation rate was within its forecast range of 5.6 percent to 6.6 percent. On a month-on-month seasonally adjusted basis, headline inflation was unchanged for the second straight month.

Core inflation, which excludes volatile food and energy prices, also moderated to 4.2 percent in July from 4.4 percent in June, indicating easing underlying price pressures.

The central bank said average headline inflation for the first seven months of 2026 settled at 5.0 percent, still above the government’s full-year target of 3.0 percent and the tolerance range of plus or minus one percentage point.

Lower fuel prices outside the National Capital Region helped slow transport inflation, while inflation in education, restaurants, and accommodation services also eased, contributing to lower non-food inflation.

Food inflation, however, remained steady. The BSP said meat prices continued to decline due to sustained imports and lower farmgate prices, while vegetable inflation eased amid stable harvests. Rice inflation, on the other hand, accelerated partly because of higher logistics costs.

Despite the slowdown in overall inflation, households in the lowest 30 percent income bracket experienced faster inflation, rising to 8.2 percent in July from 8.0 percent in June.

The BSP said it will continue to monitor developments that could affect inflation and economic growth and remains prepared to take further monetary action, if necessary, to help bring inflation back toward its 3.0-percent target.