A sharp slowdown in transport costs helped ease the country’s inflation rate in June, offsetting persistent price pressures in housing and other essential goods as consumers saw modest relief from rising living expenses.

Data released by the Philippine Statistics Authority (PSA) showed headline inflation slowed to 6.4 percent in June from 6.8 percent in May, bringing the average inflation rate for the first half of 2026 to 4.8 percent.

The deceleration was driven mainly by transport inflation, which slowed to 12.8 percent from 16.2 percent a month earlier. Food and non-alcoholic beverages also posted a slower annual increase of 5.2 percent from 5.7 percent, while furnishings and household maintenance eased to 3.7 percent from 3.9 percent.

Despite the slowdown, food remained the biggest contributor to overall inflation, accounting for 2.0 percentage points, followed by housing, water, electricity, gas and other fuels with 1.7 percentage points, and transport with 1.2 percentage points.

Food inflation likewise eased to 5.4 percent in June from 5.8 percent in May.

The improvement was largely attributed to a steeper decline in meat prices and slower increases in fish and rice. Rice inflation slowed to 15.0 percent from 15.6 percent, while fish inflation eased to 7.8 percent from 8.8 percent. Lower inflation was also recorded for corn, cooking oils, dairy products, eggs, and sugar.

However, higher price increases were seen in vegetables, bakery products, and ready-made food.

Among food items, cereals and cereal products remained the largest source of food inflation, contributing 68.4 percent, followed by fish and seafood at 25.1 percent, and vegetables at 14.6 percent.

Meanwhile, core inflation, which excludes selected food and energy items, accelerated to 4.4 percent in June from 4.1 percent in May, indicating that underlying price pressures remain elevated despite the easing in headline inflation.

In the National Capital Region, inflation slowed slightly to 4.9 percent from 5.0 percent, largely due to lower transport and food inflation.

Outside Metro Manila, inflation also eased to 6.7 percent from 7.1 percent, with transport costs again serving as the primary driver of the slowdown. Thirteen regions posted lower inflation during the month, with the Negros Island Region recording the lowest rate at 4.9 percent, while Central Visayasregistered the highest at 10.0 percent.

Although June marked another month of easing inflation, rising costs for housing, utilities, education, health services, and restaurants continued to keep overall price growth well above year-ago levels, suggesting inflationary pressures remain uneven across sectors.