The Bangko Sentral ng Pilipinas (BSP) expects headline inflation to ease to between 6 percent and 7 percent in June, as lower fuel and food prices help temper overall price pressures.
The BSP said the continued decline in domestic oil prices, along with lower prices of key food items such as rice and meat, is expected to contribute to slower inflation during the month.
However, these easing price pressures could be partly offset by higher electricity rates and increased vegetable prices, which remain among the factors affecting consumer costs.
Despite the expected moderation, the BSP said it will continue to closely monitor economic conditions before making any monetary policy decisions.
“The BSP will remain vigilant and guided by incoming data, particularly on inflation and growth prospects,” the central bank said.
“It will continue to monitor recent developments in the Middle East for their implications for inflation and economic activity,” it added.
The Philippine Statistics Authority earlier reported that headline inflation eased to 6.8 percent in May 2026 from 7.2 percent in April 2026.
This brought the average inflation rate from January to May 2026 to 4.5 percent.