The country’s headline inflation slowed to 6.2% in July 2026 from 6.4% in June, the Philippine Statistics Authority (PSA) said, citing easing price pressures in key sectors such as transport and education services.

The PSA said the deceleration brought the country’s average inflation rate from January to July 2026 to 5.0%. In July 2025, inflation was recorded at 0.9%.

The agency attributed the slower inflation in July mainly to a reduced pace of price increases in transport, which posted an annual growth rate of 11.9% from 12.8% in June.

Slower increases were also observed in education services, which grew by 1.9% from 4.0% the previous month, and in restaurants and accommodation services, which eased to 6.8% from 7.0%.

Despite the overall slowdown, several commodity groups registered faster annual price increases. These included alcoholic beverages and tobacco at 6.0% from 5.9%; housing, water, electricity, gas and other fuels at 8.2% from 8.1%; and furnishings and household maintenance at 3.9% from 3.7%.

Higher inflation was likewise seen in health at 4.8% from 4.6%, information and communication at 1.1% from 1.0%, recreation and culture at 5.3% from 5.2%, and personal care and miscellaneous goods and services at 3.8% from 3.7%.

The PSA said the top contributors to July’s overall inflation were food and non-alcoholic beverages, accounting for 32.1% or 2.0 percentage points; housing and utilities with a 26.8% share or 1.7 percentage points; and transport, which contributed 17.4% or 1.1 percentage points.