Manila: Easing transport costs, improved supply conditions, and government measures contributed to a reduction in the Philippines' inflation rate to 6.2 percent in July, down from 6.4 percent in June.
According to Philippines News Agency, data from the Philippine Statistics Authority revealed that the year-to-date average inflation now stands at 5 percent. National Statistician Dennis Mapa explained that the decline in inflation in July was due to a slower annual increase in the transport index, which fell to 11.9 percent from 12.8 percent in June 2026. Gasoline inflation specifically dropped to 34.1 percent from 39.2 percent in June, while road transport inflation slightly decreased to 5.3 percent from 5.4 percent. Food inflation remained stable at 5.3 percent, with lower meat prices and a slower rise in vegetable prices balancing out a sharper increase in rice inflation.
In a statement, the Department of Economy, Planning, and Development (DEPDev) highlighted government measures supporting price stability, including assistance programs for the transport sector. DEPDev reported that as of July 24, PHP2.09 billion, or 84 percent of the PHP2.5-billion Fuel Subsidy Program, had been distributed to benefit 498,570 public utility vehicles. Additionally, PHP356.1 million in fuel assistance was provided to 89,551 PUV drivers under the PHP10 per liter Fuel Subsidy Program.
DEPDev Secretary Arsenio Balisacan emphasized the impact of these savings, stating, "Every peso saved from slower price increases means more room for the family budget for food, transport, education, and other essential needs." He acknowledged ongoing challenges, particularly in managing food price pressures, but noted that current interventions are mitigating impacts on Filipino households.
Despite the reduction in inflation, DEPDev announced that the government's UPLIFT Committee will persist with targeted interventions to shield vulnerable sectors from the effects of high prices and economic shocks. This initiative aligns with President Ferdinand R. Marcos Jr.'s recent State of the Nation Address. The Department of Agriculture plans to complete 380 mechanical drying systems by 2027 to reduce grain losses, enhance rice quality, increase farmers' incomes, and fortify the domestic rice supply. Additional efforts will focus on distributing seeds and fertilizer in water-rich rice-growing regions and supporting drought-affected farmers to minimize production losses.
In the long term, the government is pushing forward with power sector reforms in line with the Philippine Energy Plan 2023-2050. These reforms aim to reduce dependency on imported fuels by accelerating renewable energy contracts and ensuring the full delivery of awarded capacity, with a goal of adding 25 gigawatts of renewable energy capacity by 2035.
Balisacan concluded, "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."
