Inflation eases to 6.4% in June 2026 as fuel, food prices cool

MANILA, Philippines – Inflation in the country eased to 6.4% in June as lower prices of fuel and some food items helped temper overall price increases, the Philippine Statistics Authority reported on Tuesday, July 7.

This was slower than the 6.8% recorded in May, marking the second straight month of easing inflation after the rate hit a three-year high of 7.2% in April.

Still, inflation remained well above the government’s target range of 2% to 4%.

The Bangko Sentral ng Pilipinas (BSP) earlier projected inflation would settle between 6% and 7%. The central bank said lower domestic oil prices and cheaper major food items — such as rice and meat — could temper inflation for June, although higher electricity rates and vegetable prices could partly offset these downward pressures.

Department of Economy, Planning, and Development Secretary Arsenio Balisacan had expected the June inflation print to show another “improvement,” but warned that price pressures would likely remain above the government’s 2% to 4% target for the rest of the year. (READ: The Philippines is now upper-middle income. Why doesn’t it feel that way?)

“We’ll still be challenged by the inflation, but we are determined to get that inflation come down as fast as we can,” Balisacan said on Monday, July 6.

He added that some risks remain beyond the government’s control, particularly oil-related shocks from the Middle East. “Hopefully this crisis in the Middle East will find a final solution so that there will be stability there because we depend a lot on our oil from that region,” he said.

Bank of the Philippine Islands lead economist Jun Neri had also expected headline inflation to ease to 6.5% in June, helped by the continued pass-through of fuel rollbacks and lower rice prices. However, he warned that the pace of disinflation may be fading, as most of the pump-price rollbacks may have already been reflected in retail prices.

The Monetary Board raised the benchmark interest rate by 25 basis points to 4.75% in June — its second straight hike — as the BSP sought to keep still-elevated inflation risks under control. BSP Governor Eli Remolona Jr. has said the economy could still absorb another 25-basis-point increase. – Rappler.com