Arthur Fuentes

Motorists fill-up at a gas station in Quezon City, May 28, 2018. Jonathan Cellona, ABS-CBN News

Article (news)

Gas prices

Benise Balaoing

ABS-CBN News

MANILA — Inflation eased to 6.4 percent in June as fuel prices fell compared to previous months, the Philippine Statistics Authority (PSA) said Tuesday. “The downtrend in the overall inflation in June 2026 was primarily brought about by the slower annual increase in the transport index at 12.8 percent during the month from 16.2 percent in May 2026,” the PSA said. <div><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/1783387462447inflation june 26.png" style="width:960px" class="fr-fic fr-dib" width="960"/></div>Food inflation was also slower in June at 5.4 percent compared to 5.8 percent in May.The June clip was within/below the Bangko Sentral ng Pilipinas&#x27; forecast range of 6 to 7 percent. It also brought the average inflation for the first half of the year to 3.8 percent.However, core inflation, which excludes food and energy items that are prone to big price swings, increased to 4.4 percent in June 2026 from 4.1 percent in May 2026. In June 2025, core inflation rate was lower at 2.2 percent.The Department of Economy Planning and Development said the easing inflation pressures reflect both improving global conditions as well as the impact of government measures, such as targeted assistance for farmers, fisherfolk, and transport service providers, as well as  lifting of toll fees for vehicles transporting agricultural produce.“If we want stable prices, we need a stable food supply,” said DEPDev Secretary Arsenio Balisacan.The government&#x27;s chief economist also said the government aims to reduce the impact of weather shocks such as the strong El Nino on the economy. He also highlighted the government&#x27;s plan to establish a strategic petroleum reserve together with the Japanese government. “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 said. The Bank of the Philippine Islands (BPI) earlier said it sees inflation easing slightly in June, citing falling Dubai crude prices and the start of the harvest season for rice.Inflation slightly eased to 6.8 percent in May from 7.2 percent in April. However, this was still one of the highest inflation rates in recent years, and was way above the 2 to 4 percent target set by economic managers.The skyrocketing prices of oil following the US-Israeli attacks on Iran have been blamed for the surge in inflation since March. But even with the expected normalization of oil shipping on the Strait of Hormuz, analysts have said that it may take months before fuel prices return to pre-Mideast war levels.The cabinet-level Development Budget Coordination Committee (DBCC) recently revised its average inflation forecast for the year to 6 to 7 percent.

Inflation eased in June as fuel prices fell compared to previous months, the Philippine Statistics Authority (PSA) said Tuesday.

Inflation eased in June as fuel prices fell compared to previous months, the Philippine Statistics Authority (PSA) said Tuesday.

Inflation eases to 6.4 percent in June as fuel prices decline

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Inflation eases to 6.4 percent in June as fuel prices decline

Benise Balaoing,

Arthur Fuentes,

ABS-CBN News

Published July 07, 2026 09:14 AM PHT

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Updated July 07, 2026 09:35 AM PHT

Read More:

inflation

oil

Philippine Statistics Authority

economy

prices

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