Central Bank of the Philippines reports July inflation easing to 6.2 percent, remains ready for further monetary action

The Central Bank of the Philippines reported that year-on-year headline inflation eased to 6.2 percent in July from 6.4 percent in June, within its 5.6 percent to 6.6 percent forecast range. Core inflation fell to 4.2 percent from 4.4 percent, while average headline inflation for the first seven months of 2026 was 5.0 percent, above the 3.0 percent full-year target and its tolerance range of plus or minus 1 percentage point. Slower transport inflation and easing price growth in selected services drove the decline, while food inflation was unchanged. Lower meat and vegetable inflation offset an increase in rice inflation linked partly to higher logistics costs. Inflation for households in the lowest 30 percent income group rose to 8.2 percent from 8.0 percent. The central bank will monitor the effects of recent developments on inflation and growth and remains prepared to take further monetary action to bring inflation close to the 3.0 percent target.