The Philippine Statistics Authority reported that headline inflation slowed to 6.8 percent in May 2026 from 7.2 percent in April, driven by lower transport and food price increases.
DEPDev Secretary Arsenio Balisacan stated government interventions helped cushion elevated global oil prices, but the 4.5 percent five-month average inflation remains above the government's 2-to-4 percent target range.
Despite easing transport costs, consumers face continued pressure from high basic goods as rice inflation rose to 15.6 percent, corn climbed to 25.5 percent, and electricity rose to 8.9 percent.
INFLATION in the Philippines eased in May 2026 as transport and food price increases slowed down. However, the cost of several basic goods remained high, keeping pressure on household budgets.
A closer look at the numbers
The Philippine Statistics Authority (PSA) said headline inflation slowed to 6.8 percent in May from 7.2 percent in April. This means prices continued to rise from the same period last year, but at a slower pace than in the previous month. In May 2025, headline inflation was 1.3 percent.
The May figure brought average inflation in the first five months of 2026 to 4.5 percent. This average remains above the government’s target range of two percent to four percent.
Cheaper fuel and transport costs
The slowdown was driven mainly by lower transport inflation, according to the Department of Economy, Planning and Development (DEPDev). Transport inflation eased to 16.2 percent in May from 21.4 percent in April, helped by slower increases in fuel prices.
Inflation is the general rise in prices of goods and services over time. When inflation is high, people need more money to buy the same items, such as rice, fuel, electricity, transport and other basic goods.
Diesel inflation fell to 58.5 percent from 122.7 percent, while gasoline inflation slowed to 51.6 percent from 59.6 percent. The decline in transport costs also helped bring non-food inflation down to 7.4 percent from 8.2 percent.
Government actions on oil prices
DEPDev Secretary Arsenio Balisacan said government measures helped cushion the impact of high global oil prices on consumers.
“While global oil prices remain elevated, transport inflation has begun to slow down. The government's timely and targeted interventions help mitigate the impact of external shocks on Filipino households,” Balisacan said.
Mixed changes in food prices
Food inflation also eased to 5.8 percent in May from 6.1 percent in April. The slower increase was seen in vegetables, fish and meat.
Vegetable inflation slowed to 6.2 percent from 10.4 percent, while fish inflation eased to 8.8 percent from 9.4 percent. Meat prices continued to decline, with inflation at -2.5 percent from -1.9 percent in April, amid oversupply in key production areas.
Despite the easing, several staple food items became more expensive. Rice inflation rose to 15.6 percent from 13.7 percent, while corn inflation climbed to 25.5 percent from 21 percent. Higher inflation was also recorded for flour, bread, bakery products and pasta.
Rising power bills
Electricity costs also increased, with inflation rising to 8.9 percent from 8.3 percent. DEPDev attributed this to higher generation charges, tighter power supply conditions and the depreciation of the peso.
The figures show that inflation has slowed, but not enough to bring prices back within the government’s target range. For households, the easing in transport and some food items may offer limited relief, but the high cost of rice, corn, electricity and fuel-related goods continues to weigh on consumers.
Plans to protect families
Balisacan said the government would continue monitoring inflation through the multi-agency Unified Package for Livelihoods, Industry, Food and Transport Committee. They will pursue measures to strengthen domestic food production, improve logistics and market efficiency and provide support to vulnerable sectors.
The government also said it would continue fuel assistance for public utility vehicle operators and drivers, secure adequate fuel supplies, explore alternative energy sources and accelerate the transition to renewable energy.
Authorities also plan to strengthen agricultural resilience through cloud-seeding operations, solar-powered irrigation systems and crop diversification programs under the reconvened El Niño Task Force. / TPM