The Marcos administration said it remains cautious amid the positive news that the country’s inflation tamed gradually to 6.2 percent last July from 6.4 percent in June, bringing the average year-to-date inflation from January to July 2026 to 5.0 percent.

“These positive developments are good news. However, the administration remains vigilant as political tensions in the Middle East persist, and the impact of El Niño continues to threaten food and energy prices,” said Palace press officer, Presidential Communications Office Undersecretary Claire Castro on Wednesday.

In its report, the Philippine Statistics Authority said the downtrend in overall inflation in July 2026 was primarily brought about by the slower annual increase in the transport index at 11.9 percent during the month from 12.8 percent in June 2026.

Also contributing to the inflation downtrend were the slower annual growth rates in the indices of education services at 1.9 percent during the month from 4.0 percent in June 2026, and restaurants and accommodation services at 6.8 percent in July 2026 from 7.0 percent in the previous month.

At the national level, food inflation remained at 5.3 percent in July 2026. In July 2025, food inflation recorded an annual decrease of 0.5 percent

“That is why the government continues to implement specific measures to protect Filipino families and keep goods affordable. Our goal remains broad: to reduce daily expenses, strengthen food and energy security, protect the purchasing power of Filipino families, and sustain economic growth that benefits every household,” according to Castro.