Philippine headline inflation eased for the third straight month in July, slowing to 6.2 percent from 6.4 percent in June and 6.8 percent in May, as transport costs rose at a slower pace, data from the Philippine Statistics Authority (PSA) showed.
Despite the moderation, inflation remained significantly higher than the 0.9 percent recorded in July last year, bringing the average inflation rate for January to July 2026 to 5.0 percent.
The deceleration was largely driven by slower increases in transport prices, alongside softer inflation for education services and restaurants and accommodation services. However, price pressures remained elevated in key household spending categories.
Food inflation held steady at 5.3 percent, while core inflation—which excludes selected food and energy items—eased to 4.2 percent from 4.4 percent in June, suggesting underlying price pressures continued to moderate.
Highlights
- Headline inflation: 6.2 percent in July 2026, down from 6.4 percent in June
- January-July average inflation: 5.0 percent
- July 2025 inflation: 0.9 percent
Main drivers of slower inflation
- Transport inflation eased to 11.9 percent from 12.8 percent
- Education services slowed to 1.9 percent from 4.0 percent
- Restaurants and accommodation services eased to 6.8 percent from 7.0 percent
Categories with faster inflation
- Alcoholic beverages and tobacco: 6.0 percent (from 5.9 percent)
- Housing, water, electricity, gas and other fuels: 8.2 percent (from 8.1 percent)
- Furnishings and household maintenance: 3.9 percent (from 3.7 percent)
- Health: 4.8 percent (from 4.6 percent)
- Information and communication: 1.1 percent (from 1.0 percent)
- Recreation, sport and culture: 5.3 percent (from 5.2 percent)
- Personal care and miscellaneous goods and services: 3.8 percent (from 3.7 percent)
Top contributors to July inflation
- Food and non-alcoholic beverages: 2.0 percentage points (32.1 percent share)
- Housing, water, electricity, gas and other fuels: 1.7 percentage points (26.8 percent share)
- Transport: 1.1 percentage points (17.4 percent share)
Food inflation
- Unchanged at 5.3 percent
- Contributed 1.9 percentage points (30.3 percent) to headline inflation
- Cereals and cereal products: 3.9 percentage points (74.4 percent share)
- Fish and other seafood: 1.3 percentage points (25.1 percent share)
- Vegetables, tubers and pulses: 0.7 percentage point (13.9 percent share)
Core inflation
Across the regions
- NCR: 4.4 percent (down from 4.9 percent)
- Areas outside NCR: 6.7 percent (down from 6.8 percent)
- Highest inflation: Central Visayas (Region VII) at 8.7 percent
- Lowest inflation: Ilocos Region (Region I) at 5.1 percent
- 10 regions outside NCR posted higher inflation than in June despite the nationwide slowdown. —Ed: Corrie S. Narisma
