Inflation eases for second straight month in June

LOWER transport and food prices led Philippine inflation to ease for a second straight month in June, although continued pass-through effects continued to drive core inflation faster, the Philippine Statistics Authority (PSA) said.

Based on PSA data released on Tuesday, headline inflation slowed to 6.4% in June from 6.8% in May, but was still much faster than the 1.4% pace logged a year ago.

The June inflation print came in below the 6.6% median forecast in a BusinessWorld poll of 18 analysts.

National Statistician Claire Dennis S. Mapa said inflation in transport cooled to 12.8% in June from 16.2% in May, while food and nonalcoholic beverages eased to 5.2% from 5.7%.

“Inflation slowed in June as easing oil price pressures and continued government measures to strengthen food supply helped temper price increases,” the Department of Economy, Planning, and Development (DEPDev) said in a separate statement, likewise noting easing tensions in the Middle East.

As of the first half of the year, inflation averaged 4.8%, still above the Bangko Sentral ng Pilipinas’ (BSP) 4% ceiling.

Meanwhile, core inflation, which discounts volatile fuel and food prices, quickened to 4.4% from 4.1% in May and 2.2% last year.

This matched the December 2023 reading and was the fastest pace seen since the 4.7% in November 2023.

Mr. Mapa noted that faster price increases in utilities, restaurants and accommodation services and education services, among others pushed the core print to an over two-year high.

PSA data also showed inflation in the National Capital Region (NCR) was slower at 4.9% in June from 5% in May, but picked up from 2.6% a year ago.

Outside NCR, it eased to 6.7% from 7.1% the previous month, but was faster than the 1.1% last year.

For the bottom 30% of income households, inflation also cooled to 8% in June from 8.4% in May. However, this was significantly faster than the -0.4% recorded in June 2025. — Katherine K. Chan