Easing transport costs and improving supply conditions tempered price pressures in July, bringing the country’s headline inflation rate down to 6.2 percent from 6.4 percent in June, according to the Philippine Statistics Authority (PSA).

The latest Consumer Price Index report showed that average inflation from January to July 2026 stood at 5.0 percent, with the slowdown largely driven by the easing transport inflation, which declined to 11.9 percent from 12.8 percent a month earlier.

Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio M. Balisacan said the slower pace of price increases provided some relief to Filipino households, allowing more room for spending on basic needs.

“Every peso saved from slower price increases means more room for the family budget for food, transport, education and other essential needs,” 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.”

Food inflation remained unchanged at 5.3 percent in July, with food and non-alcoholic beverages accounting for the largest share of overall inflation at 2 percentage points. Rice and other cereal products, fish and seafood, and vegetables were among the biggest contributors to food price increases.

Outside food, housing, water, electricity, gas and other fuels contributed 1.7 percentage points to inflation, while transport accounted for 1.1 percentage points.

In the National Capital Region, inflation slowed to 4.4 percent from 4.9 percent in June, mainly due to slower increases in housing and utility costs, food prices and education services. Areas outside NCR also recorded a slight improvement, with inflation easing to 6.7 percent from 6.8 percent.

The government said ongoing measures to manage prices include fuel assistance programs for the transport sector, food supply interventions and investments in agricultural productivity. As of July 24, around P2.09 billion of the P2.5-billion Fuel Subsidy Program had been distributed to nearly 500,000 public utility vehicles.

Balisacan said the government will continue implementing targeted measures to protect vulnerable sectors while pursuing long-term reforms in agriculture and energy to strengthen supply stability.

“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,” he said.