The annual inflation rate in the Philippines eased to 6.4% in June 2026, a three-month low, from 6.8% in May. Transport inflation slowed markedly to 12.8% from 16.2%, reflecting weaker fuel price pressures, although it remained the largest contributor to overall inflation. Price growth also moderated for food and non-alcoholic beverages (5.2% vs. 5.7%) and for furnishings and household equipment (3.7% vs. 3.9%).
In contrast, inflation accelerated in several key categories, including housing and utilities (8.0% vs. 7.8%), alcoholic beverages and tobacco (5.9% vs. 5.4%), health (4.6% vs. 4.1%), education services (3.9% vs. 2.9%), and restaurants and accommodation services (7.0% vs. 6.7%).
On a monthly basis, the consumer price index (CPI) fell 0.3%, defying expectations of a 0.05% increase and following a 0.5% decline in May. Meanwhile, annual core inflation accelerated to 4.4%, exceeding both market forecasts and May’s 4.1% reading, and reaching its highest level since December 2023. Overall inflation remained above the government’s 2%–4% target range.
