Headline inflation further slowed to 6.2 percent in July from 6.4 percent in June as easing transport costs and improving supply conditions tempered price pressures, according to the Department of Economy, Planning, and Development (DEPDev).
Based on the Consumer Price Index (CPI) report released by the Philippine Statistics Authority today (Aug. 5), the year-to-date average inflation rate stood at 5.0 percent.
The slowdown was primarily due to easing transport inflation, 11.9 percent in July from 12.8 percent in June, as fuel prices fell and supply conditions improved.
Food inflation remained steady at 5.3 percent, as lower meat prices and slower increases in vegetable prices offset sharper 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 M. 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.”
As highlighted in the President’s fifth State of the Nation Address (SONA), the government’s UPLIFT Committee will continue implementing targeted interventions to protect vulnerable sectors from the effects of higher prices and other economic shocks.
Among the measures supporting price stability are government assistance programs for the transport sector. As of 24 July 2026, PHP2.09 billion, or 84 percent of the PHP2.5-billion Fuel Subsidy Program, had been disbursed to benefit 498,570 public utility vehicles, while PHP356.1 million in fuel assistance had been provided to 89,551 PUV drivers under the PHP10-per-liter Fuel Subsidy Program.
To strengthen food security and improve the domestic food supply chains, the Department of Agriculture (DA) is also set to complete 380 mechanical drying systems by 2027, expanding post-harvest capacity to reduce grain losses, improve rice quality, raise farmers’ incomes, and strengthen domestic rice supply.
To further safeguard food supply against climate-related risks, the government will intensify the distribution of seed and fertilizer in water-abundant rice-growing areas in Southern Luzon, Visayas, and Mindanao, while continuing support for 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.
“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,” Balisacan said.
