THE country’s inflation rate eased slightly to 6.2 percent in July 2026, down from 6.4 percent in June, the Philippine Statistics Authority (PSA) reported on Wednesday, August 5, 2026.
The PSA said the July figure brought the country’s average inflation rate from January to July to 5.0 percent, still above the government’s target range of 2.0 percent to 4.0 percent.
The agency also noted that inflation has continued to slow since peaking at 7.2 percent in April, after rising from 4.1 percent in March to 6.8 percent in May and 6.4 percent in June.
In a statement, the Department of Economy, Planning, and Development (DEPDev) attributed the easing inflation to lower transport costs and improving supply conditions.
Transport inflation slowed to 11.9 percent in July from 12.8 percent in June, mainly due to lower fuel prices and the continued stabilization of supply conditions.
DEPDev also said food inflation remained steady at 5.3 percent, as lower meat prices and slower increases in vegetable prices helped offset faster rice inflation.
“Every peso saved from slower price increases means more room for the family budget for food, transport, education and other essential needs,” DEPDev Secretary Arsenio Balisacan said.
“While challenges remain, particularly in managing food price pressures, these results show that our interventions are making a difference in easing the impact on Filipino households,” he added.
The country’s inflation rate climbed to 7.2 percent in April amid the international emergency triggered by the escalating conflict in the Middle East.
In response, President Ferdinand “Bongbong” Marcos Jr. created the Unified Package for Livelihoods, Industry, Food and Transport (UPLIFT) to implement a whole-of-government response, including targeted interventions to protect vulnerable sectors from rising prices and other economic shocks.
Among the measures supporting price stability are government assistance programs for the transport sector.
During his fifth State of the Nation Address (Sona), Marcos said that as of July 24, 2026, P2.09 billion, or 84 percent of the P2.5-billion Fuel Subsidy Program (FSP), had been disbursed, benefiting 498,570 public utility vehicles. He added that P356.1 million in fuel assistance had also been released to 89,551 PUV drivers under the P10-per-liter FSP.
To strengthen food security and improve the local food supply chain, the Department of Agriculture (DA) is set to complete 380 mechanical drying systems by 2027. The project aims to expand post-harvest capacity, reduce grain losses, improve rice quality, increase farmers’ incomes, and strengthen the domestic rice supply.
To further protect food production from climate-related risks, the government will intensify the distribution of seeds and fertilizers in water-abundant rice-growing areas in Southern Luzon, the Visayas, and Mindanao. It will also continue assisting drought-affected farmers to minimize production losses.
“Over the long term, the government is advancing power sector reforms in line with the Philippine Energy Plan 2023–2050. These efforts aim to reduce reliance on imported fuels by accelerating the implementation of renewable energy contracts and ensuring the full delivery of awarded capacity. These measures support the target of adding 25 gigawatts of renewable energy capacity by 2035,” said Balisacan.
“While inflation is moving in the right direction, our work is far from over. We will continue advancing measures to keep essential goods affordable while creating more opportunities for a better quality of life,” he added. (TPM/SunStar Philippines)