Inflation continued to slow in July, offering modest relief to Filipino consumers as lower transport costs helped temper overall price increases, according to the latest data from the Philippine Statistics Authority (PSA).
Headline inflation eased to 6.2 percent in July from 6.4 percent in June, bringing the country’s average inflation rate for the first seven months of 2026 to 5.0 percent.
The Department of Economy, Planning, and Development (DEPDev) attributed the slower inflation mainly to easing transport costs, as fuel prices declined and supply conditions improved. Transport inflation slowed to 11.9 percent in July from 12.8 percent in the previous month.
Food inflation, meanwhile, remained unchanged at 5.3 percent. Lower prices for meat and slower increases in vegetable prices helped offset faster rice inflation, keeping overall food price growth steady.
DEPDev Secretary Arsenio Balisacan said the easing inflation rate provides some financial relief for households facing higher living costs.
“Every peso saved from slower price increases means more room for the family budget for food, transport, education and other essential needs,” Balisacan said, adding that the government would continue addressing food price pressures through targeted interventions.
The government said it will sustain efforts to cushion vulnerable sectors from rising prices through the UPLIFT Committee, which was highlighted during President Ferdinand Marcos Jr.’s fifth State of the Nation Address.
Among the measures being implemented are fuel assistance programs for the public transport sector. As of July 24, the government had released P2.09 billion, equivalent to 84 percent of the P2.5-billion Fuel Subsidy Program, benefiting 498,570 public utility vehicles. Another P356.1 million had been distributed to 89,551 public utility vehicle drivers under a separate fuel assistance program.
To strengthen food security, the Department of Agriculture is targeting the completion of 380 mechanical drying systems by 2027. The facilities are expected to reduce post-harvest losses, improve grain quality, increase farmers’ incomes, and enhance the country’s rice supply.
The government also plans to intensify the distribution of seeds and fertilizers in rice-producing areas with adequate water resources across Southern Luzon, the Visayas, and Mindanao, while continuing assistance for farmers affected by drought.
In the energy sector, the government said it will continue implementing reforms under the Philippine Energy Plan 2023–2050 to reduce dependence on imported fuels. The strategy includes accelerating renewable energy projects and meeting the target of adding 25 gigawatts of renewable energy capacity by 2035.
Despite the easing inflation rate, Balisacan said the government remains focused on keeping essential goods affordable while pursuing long-term measures to strengthen the economy and improve living standards.