Central Bank of the Philippines reports inflation eased to 6.2% in July but remained above target

The Central Bank of the Philippines (BSP) reported that headline inflation slowed to 6.2% in July from 6.4% in June, within its 5.6% to 6.6% forecast range. Average inflation for the first seven months of 2026 was 5.0%, above the 3.0% full-year target and its tolerance range of plus or minus 1 percentage point. Seasonally adjusted headline inflation was unchanged for a second consecutive month, while core inflation eased to 4.2% from 4.4%. Slower price increases for transport and several services drove the decline, while food inflation was unchanged. Lower petroleum prices outside the National Capital Region reduced transport inflation, and inflation also slowed for education, restaurants and accommodation services. Meat and vegetable price pressures eased, but rice inflation accelerated partly because of higher logistics costs. Inflation for households in the lowest 30% income group rose to 8.2% from 8.0%. The BSP will continue assessing developments affecting inflation and economic growth and is prepared to take further monetary policy action if needed to bring inflation closer to the 3.0% target.