Inflation slows to 6.8% in May 2026 amid easing transport, food costs

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MANILA, Philippines — Inflation slowed to 6.8% in May from 7.2% in April as transport and food prices eased despite ongoing energy-related pressures linked to the conflict in the Middle East, the Philippine Statistics Authority (PSA) said on Friday, June 5.

The latest inflation rate was lower than the Bangko Sentral ng Pilipinas' forecast range of 7.1% to 7.9% for the month. 

Despite the slowdown, inflation remained above the government's target range of 2% to 4% and stayed near its highest levels in more than three years.

Data from the PSA showed that average inflation from January to May stood at 4.5%, exceeding the government's target range.

At a briefing, National Statistician and PSA chief Claire Dennis Mapa said the slower increase in transport costs was the main driver behind the easing inflation rate in May.

“Ang pangunahing dahilan ng mas mababang antas ng inflation nitong Mayo 2026 kumpara noong Abril 2026 ay ang mas mabagal na pagtaas ng presyo ng Transport na may 16.2% inflation rate,” Mapa said.

(The main contributor to the lower inflation rate in May 2026 compared to April 2026 was the slower increase in transport prices, which posted a 16.2% inflation rate.)

Transport inflation eased to 16.2% in May from 21.4% in April following several rounds of fuel price rollbacks. According to the PSA, the transport sector accounted for 70.3% of the overall deceleration in inflation during the month.

Food inflation also slowed to 5.7% from 6% in April.

Meanwhile, inflation for housing, water, electricity, gas and other fuels decelerated to 7.8% from 8.2% after the government suspended excise taxes on kerosene and cooking gas.

The BSP had earlier warned that higher food prices and peso depreciation could put upward pressure on inflation.