Central Bank of the Philippines reports June inflation slows to 6.4 percent while core inflation rises to 4.4 percent

The Central Bank of the Philippines reported that headline inflation slowed to 6.4 percent year on year in June from 6.8 percent in May, mainly because fuel and food prices fell on a monthly basis. Even with that moderation, average inflation for the first half of 2026 stood at 4.8 percent, above the central bank’s 3.0 percent full-year target and its tolerance band of plus or minus 1 percentage point. Inflation for households in the lowest 30 percent income group also eased, to 8.0 percent from 8.4 percent. The slowdown reflected lower domestic oil prices as global oil prices moderated amid easing geopolitical tensions linked to US-Iran negotiations. Food inflation also decelerated as meat prices declined further, rice inflation slowed with continued imports and a temporary price ceiling on imported rice from mid-May to mid-June, and fish inflation eased as lower fuel costs supported fishing activity. Offsetting factors included higher vegetable prices due to off-season supply limits and higher electricity rates driven by increased generation charges. On a month-on-month seasonally adjusted basis, headline inflation was zero percent in June, after minus 0.6 percent in May. Core inflation, which excludes volatile food and energy items, increased to 4.4 percent from 4.1 percent, indicating persistent underlying price pressures despite the easing in headline inflation. June inflation was within the Bangko Sentral ng Pilipinas forecast range of 6.0 percent to 7.0 percent. The central bank said its latest projections suggest inflation will likely remain elevated in the near term and that it will stay guided by incoming data and is prepared to take further monetary action as needed to bring inflation back close to the 3.0 percent target.