Philippine inflation eases to four-month low in July

PHILIPPINE inflation cooled to its slowest pace in four months as transport prices eased and food inflation steadied, the Philippine Statistics Authority (PSA) said.

PSA data showed headline inflation slowed to 6.2% in July from 6.4% in June. However, this was much faster than the 0.9% a year ago.

This was the slowest headline figure in four months or since the 4.1% in March.

July also marked the third straight month that inflation eased.

The July print fell within the Bangko Sentral ng Pilipinas’ (BSP) 5.6%-6.6% forecast for the month, but below the 6.4% median estimate in a BusinessWorld poll of 21 economists and analysts.

July’s reading brought the year-to-date average inflation to 5%, well above the BSP’s 3% target.

Meanwhile, core inflation, which excludes volatile food and fuel prices, eased to 4.2% from 4.4% in June, but picked up from 2.3% in July 2025.

Inflation in the National Capital Region (NCR) also cooled to 4.4% in July from 4.9% in June, but quickened from 1.7% last year.

Outside NCR, it eased to 6.7%, from 6.8% in the previous month but faster than 0.7% a year earlier.

However, inflation for the bottom 30% of income households came in faster at 8.2% from 8% in June and -0.8% a year ago, bringing the average to 5.9% as of July. — Katherine K. Chan