Philippine Inflation Eases to 6.2% in July, Third Straight Monthly Slowdown, Still Above Government Target

Philippine headline inflation eased to 6.2% in July 2026 from 6.4% in June, the Philippine Statistics Authority (PSA) reported August 5 — the third straight month of slowing price growth after inflation peaked at a three-year high of 7.2% in April, according to reports from Rappler and SunStar. Despite the deceleration, the rate remains well above the government's 2%-to-4% target range, and the January-to-July average of 5.0% has yet to fall within that band this year. Food inflation held steady at 5.3% in July, with lower meat prices and slower increases in vegetable costs helping offset other pressures, Rappler reported. Rice prices continued to decline: in the second half of July, regular milled rice fell 0.74% to ₱49.30 a kilo from ₱49.67 the previous month, while well-milled rice dropped 0.82% to ₱55.69 a kilo from ₱56.15. Transport inflation slowed to 11.9% from 12.8% the month before, which the government's Department of Economy, Planning, and Development attributed mainly to lower fuel prices and improving supply conditions. Not every category eased. Housing, water, electricity, gas, and other fuels inflation ticked up to 8.2% from 8.1%, furnishings and household equipment rose to 3.9% from 3.7%, and health costs edged up to 4.8% from 4.6%, reflecting the uneven nature of the slowdown even as the headline number improved. The July figure follows a Bangko Sentral ng Pilipinas (BSP) forecast range of 5.6% to 6.6% issued on July 31, meaning the actual outturn landed within the central bank's expected band, according to the Manila Times. Economists polled by BusinessWorld had put their median forecast at 6.4%, slightly above the actual figure. Earlier this year, the BSP had already revised its full-year 2026 inflation forecast sharply upward — from 5.1% to 6.3% — and its 2027 forecast from 3.8% to 4.3%, citing persistent pressure from elevated global oil prices tied to geopolitical tensions in the Middle East. The central bank responded with a surprise 25-basis-point policy rate hike earlier this year to reassert control over inflation expectations. The easing in transport costs coincided with a rollback in local pump prices that took effect August 4, following several consecutive weeks of increases driven by the same Middle East-linked oil price pressures the BSP has flagged, Rappler reported separately. No government official has yet declared the inflation fight over; the Department of Economy, Planning, and Development's framing of the July reading as encouraging but not yet at-target reflects continued caution about further oil-price shocks or supply disruptions that could reverse the trend. **Context** July marks the seventh straight month in 2026 that inflation has run above the government's 2%-4% target band, a stretch that has coincided with a widening national budget deficit and rising debt-service costs — the Bureau of the Treasury reported in July that first-half interest payments alone reached ₱483.7 billion, up 16.6% year-on-year, even as the Marcos administration seeks congressional approval for a ₱7.2-trillion 2027 budget. Elevated and persistent inflation erodes the purchasing power of the minimum wage and social transfers even when nominal amounts rise, a dynamic playing out alongside the ongoing legal fight over Metro Manila's ₱85 minimum wage increase. The Philippine Statistics Authority is scheduled to release second-quarter GDP data on August 7, with private-sector economists forecasting growth of roughly 2% to 3.5%, as elevated inflation is widely cited as a drag on household spending. **Sources** - [Inflation eases to 6.2% in July 2026, but still elevated](https://www.rappler.com/business/inflation-rate-philippines-july-2026/) — Rappler, Aug. 5, 2026 - [Philippine inflation slows to 6.2% in July](https://www.sunstar.com.ph/manila/philippine-inflation-slows-to-62-in-july) — SunStar, Aug. 5, 2026 - [BSP sees July inflation easing to 5.6%-6.6%](https://www.manilatimes.net/2026/07/31/business/bsp-sees-july-inflation-easing-to-56-66/2395627) — The Manila Times, Jul. 31, 2026 - [Poll: Philippine inflation steady at 6.4% in July](https://bworldonline.com/top-stories/2026/08/03/767550/poll-philippine-inflation-steady-at-6-4-in-july/) — BusinessWorld, Aug. 3, 2026