The Central Bank of the Philippines published its latest Consumer Expectations Survey showing that household confidence fell substantially in the second quarter of 2026 and weakened across all reference periods. The decline was driven mainly by expectations of higher food and fuel prices linked to the Middle East conflict, alongside concerns about higher unemployment, a weaker Philippine peso and governance-related issues. The survey points to a more defensive household outlook. Consumers expected to spend more on essential goods and services, while showing less willingness to buy big-ticket items such as motor vehicles and real estate and becoming less likely to borrow or save. Year-ahead inflation expectations were slightly above the central bank’s 3 percent target but remained below the 4 percent tolerance ceiling, with respondents expecting faster inflation mainly because of higher food and utility prices. The Central Bank of the Philippines said it continues to monitor the impact of the Middle East conflict on domestic prices and the broader economy. It also noted that the survey is one of the forward-looking indicators used in monetary policy formulation.
Central Bank of the Philippines2026-06-26
Central Bank of the Philippines reports sharp fall in Q2 2026 consumer confidence on price and employment concerns
The Central Bank of the Philippines said its Q2 2026 Consumer Expectations Survey showed a broad decline in household confidence. Households cited expected increases in food and fuel prices linked to the Middle East conflict, as well as higher unemployment, a weaker peso and governance concerns. Year-ahead inflation expectations rose slightly above the bank’s 3 percent target but stayed below the 4 percent tolerance ceiling.