For the second month in a row, headline inflation continued to moderate, falling to 6.4 percent in June 2026 from 6.8 percent recorded in May. This slowdown comes primarily as global oil prices soften and government interventions help stabilize the country’s food supply.
During a briefing held last Tuesday, National Statistician Dennis Mapa noted that the latest figures bring the average inflation rate for the first half of the year — from January to June 2026 — to 4.8 percent.
The deceleration was led largely by lower costs in the transport sector. Transport inflation eased noticeably to 12.8 percent in June, down from 16.2 percent in May, a change linked to reduced geopolitical tensions in the Middle East. Specifically, the rate of increase for diesel prices slowed to 39 percent, compared to 58.5 percent the previous month. Similarly, gasoline inflation declined to 39.2 percent from 51.6 percent in May.
In addition to cheaper fuel, the rise in prices for food and non-alcoholic beverages also slowed. This category grew by 5.2 percent in June, a drop from the 5.7 percent increase seen in May.
“Every percentage point drop in inflation matters to Filipino families,” said DEPDev Secretary Arsenio Balisacan in a separate statement. “It means household budgets can go further, especially for poor families who spend a large share of their income on food and transportation.”
According to Balisacan, these easing price pressures are the result of both improving global market conditions and targeted government efforts. Measures include providing support to farmers, fisherfolk, and transport operators, as well as waiving toll fees for vehicles carrying agricultural goods.
Still, he emphasized that maintaining stable prices requires consistent action. “If we want stable prices, we need a stable food supply. Reducing losses from weather disturbances and other supply disruptions remains one of the most effective ways to protect both consumers and producers from future price shocks,” he explained.
To this end, the government is rolling out the El Niño Food Security Action Plan, with a budget of PHP 26.13 billion. The program aims to boost the country’s readiness against extreme weather events, ensure sufficient food stocks, reduce income losses among affected producers, and make affordable food more accessible to consumers.
Looking ahead, the Philippines is also working with Japan to set up a national strategic petroleum reserve. This initiative will serve as a safeguard against geopolitical risks and sudden spikes in fuel costs.
“Our goal is not only to bring inflation down but to keep it low and stable. That requires stronger food production, more efficient supply chains, and greater resilience to climate and other shocks,” Balisacan stated. “By strengthening these foundations, we can help Filipino families plan, save, and prosper with greater confidence.”
