Inflation eases to 6.2% in July 2026, but still elevated

ESSENTIAL GOODS. A consumer buys basic commodities at the Paco Market in Manila on March 11, 2026. Rappler Average inflation for January to July 2026 stands at 5%, remaining well above the government's target range of 2% to 4% MANILA, Philippines – Inflation in the Philippines softened to 6.2% in July as the relative slowdown in transport helped temper overall price increases, the Philippine Statistics Authority reported on Wednesday, August 5. This was slightly slower than the 6.4% recorded in June, marking the third straight month of easing inflation after the rate hit a three-year high of 7.2% in April. Average inflation for January to July stood at 5%, remaining well above the government’s target range of 2% to 4%. The Bangko Sentral ng Pilipinas (BSP) had projected July inflation to settle between 5.6% and 6.6%. It said elevated domestic petroleum prices, higher electricity rates, rising fish prices, and the peso’s depreciation against the US dollar could push inflation higher. These pressures were expected to be partly offset by cheaper rice, meat, vegetables, and fruits. The Monetary Board raised the benchmark interest rate by 25 basis points to 4.75% in June, its second consecutive increase, as the BSP sought to prevent elevated inflation from becoming more persistent. The central bank has raised rates by a total of 50 basis points in 2026 and is scheduled to hold its next policy meeting on August 27. BSP Governor Eli Remolona Jr. has said the economy could absorb another rate increase if further tightening is needed to bring inflation back toward target. – Rappler.com How does this make you feel? Loading