The Philippine inflation rate slowed for a second consecutive month in June, driven by lower transport and food prices. However, the pace of core inflation accelerated, according to the Philippine Statistics Authority.
The headline inflation rate decreased to 6.4% in June from 6.8% in May, but remained significantly higher than the 1.4% pace recorded a year ago. This slowdown in inflation was below the median forecast of 6.6% predicted by 18 analysts in a recent poll.
Transport inflation, in particular, cooled to 12.8% in June from 16.2% in May, while food and nonalcoholic beverages eased to 5.2% from 5.7%. The Department of Economy, Planning, and Development noted that easing oil price pressures and continued government measures to strengthen food supply helped temper price increases.
As a result, inflation averaged 4.8% in the first half of the year, still above the Bank's 4% ceiling. However, core inflation, which discounts volatile fuel and food prices, quickened to 4.4% from 4.1% in May and 2.2% last year, matching the December 2023 reading and reaching its fastest pace since November 2023.
The core inflation print was driven by faster price increases in utilities, restaurants and accommodation services, and education services, among others. Inflation in the National Capital Region (NCR) was slower at 4.9% in June from 5% in May, but picked up from 2.6% a year ago.
Outside NCR, inflation eased to 6.7% from 7.1% the previous month, but was faster than the 1.1% last year. For the bottom 30% of income households, inflation also cooled to 8% in June from 8.4% in May, but was significantly faster than the -0.4% recorded in June 2025.
