Philippine Inflation Eases to 6.2% in July, Lowest Reading Since March
- ▸The Philippine Statistics Authority reported headline inflation slowed to 6.2% in July 2026, down from 6.4% in June, driven mainly by softer transport cost increases.
- ▸Core inflation, which strips out volatile food and energy items, also eased, to 4.2% from 4.4% in June.
- ▸The reading keeps average inflation for the first seven months of 2026 at 5.0%, still well above the central bank's 2%-4% target range.
The Philippines' headline inflation rate slowed to 6.2% in July 2026, down from 6.4% in June, according to the Philippine Statistics Authority (PSA), which announced the figures at a press conference on August 5. It marks the lowest reading since March this year, extending a cooling trend after inflation peaked at 7.2% in April.
The slowdown was driven mainly by transport costs, where annual price increases eased to 11.9% from 12.8% in June, as fuel price pressures moderated. Core inflation, which excludes volatile food and energy items and gives a clearer read on underlying price pressure, also eased slightly, to 4.2% from 4.4% the month before.
Even with the improvement, inflation remains well above the Philippines' official target band of 2.0% to 4.0% set by the Bangko Sentral ng Pilipinas (BSP), the country's central bank. The PSA said average inflation for the January-to-July period now stands at 5.0% year-on-year — still elevated by historical standards, even as the monthly trend points in the right direction.
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Cite This Article
EconoLens Editorial Team. (2026, August 10). Philippine Inflation Eases to 6.2% in July, Lowest Reading Since March. EconoLens. https://www.econolens.co.in/news/philippines-inflation-eases-6-2-percent-july-2026
The EconoLens editorial team covers global macroeconomics, monetary policy, fiscal policy, and international trade. All content is AI-assisted and fact-checked.