Philippine Inflation Slows to 6.2 Percent in July

Annual inflation in the Philippines slowed to 6.2% in July 2026, down from 6.4% in June. The Philippine Statistics Authority attributed this decline to a slower increase in transport costs, which dropped to 11.9% from 12.8% the previous month. This continues a three-month downward trend following a three-year high of 7.2% in April.

Despite the overall slowdown, inflation for the poorest 30% of households accelerated to 8.2%. This spike was driven by rice prices hitting 17.1%, the highest level since July 2024, alongside electricity inflation climbing to 17%. Average inflation for the first seven months of 2026 stands at 5%, which exceeds the government target range of 2% to 4%.

To combat persistent price pressures, the Bangko Sentral ng Pilipinas raised benchmark interest rates by 25 basis points to 4.75% in June. Governor Eli Remolona stated the economy could absorb further rate increases if necessary. The central bank is scheduled to meet again on August 27 to determine further policy actions.