Philippine inflation slowed in June as transport and food price pressures eased, giving households some relief after months of elevated consumer prices.
The Philippine Statistics Authority (PSA) reported that headline inflation dropped to 6.4 percent in June from 6.8 percent in May. The latest figure brought the year-to-date average inflation rate to 4.8 percent.
The Department of Economy, Planning, and Development (DEPDev) said the slowdown was largely driven by lower transport inflation, which eased to 12.8 percent from 16.2 percent in May as oil price pressures weakened amid easing tensions in the Middle East.
Food and non-alcoholic beverage inflation also moderated to 5.2 percent in June from 5.7 percent the previous month.
“Every percentage point drop in inflation matters to Filipino families,” DEPDev Secretary Arsenio Balisacan said. “It means household budgets can go further, especially for poor families who spend a large share of their income on food and transportation.”
Balisacan said the softer inflation print reflected both improving global conditions and coordinated government measures aimed at easing pressure on consumers and producers.
These measures include targeted assistance for farmers, fisherfolk, and transport service providers, as well as the lifting of toll fees for vehicles transporting agricultural goods.
“If we want stable prices, we need a stable food supply,” Balisacan said. “Reducing losses from weather disturbances and other supply disruptions remains one of the most effective ways to protect both consumers and producers from future price shocks.”
DEPDev said the government is implementing the El Niño Food Security Action Plan, backed by P26.13 billion in funding to strengthen preparedness for weather disturbances, secure food supply, reduce income losses among affected farmers and fisherfolk, and widen access to affordable food.
The agency also said the Philippines and Japan are advancing plans to establish a national strategic petroleum reserve, which is intended to help cushion the country from geopolitical disruptions and sharp swings in fuel prices.
“Our goal is not only to bring inflation down but to keep it low and stable. That requires stronger food production, more efficient supply chains, and greater resilience to climate and other shocks,” Balisacan said. “By strengthening these foundations, we can help Filipino families plan, save, and prosper with greater confidence.”