The Philippines' inflation rate slowed to 6.4% in June 2026, down from 6.8% in May, but still above the government's target range of 2% to 4%.

The Philippine Statistics Authority reported that lower fuel and food prices helped temper overall price increases, though energy and vegetable costs could offset these gains.

The Bangko Sentral ng Pilipinas (BSP) had projected inflation to settle between 6% and 7%, and the central bank emphasized that domestic oil price declines and cheaper staples like rice and meat were key factors.

However, officials warned that inflation is likely to stay above the target for the rest of the year due to persistent risks like Middle East oil shocks and rising electricity rates.Department of Economy Secretary Arsenio Balisacan acknowledged the progress but stressed the need for continued efforts to bring inflation down.Meanwhile, the Monetary Board raised interest rates by 25 basis points to 4.75% to manage lingering inflation risks.

Analysts noted that while disinflationary pressures are present, the pace may slow as fuel price cuts and lower rice costs have already been largely reflected in retail prices.