Inflation in the Philippines decelerated in May 2026 as food and fuel costs showed slower price growth, according to the Philippine Statistics Authority (PSA) on Friday, June 5.
The country’s inflation rate slowed to 6.8% in May from 7.2% in April, National Statistician and PSA Chief Claire Dennis Mapa announced during a press briefing.
Mapa attributed the slowdown largely to the transport sector.
“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 decrease in the inflation rate in May 2026 compared to April 2026 was the slower increase in Transport prices which posted a 16.2% inflation rate.)
As of May, the average inflation rate for the year stood at 4.5%, surpassing the government’s target range of 2% to 4%.
Transport inflation, fuel and gas
The transport sector remained the primary driver of the country’s inflation deceleration. After showing an inflation rate of 21.4% in April, the transport index accounted for 70.3% of the overall slowdown in inflation.
The easing of transport inflation was attributed to slower price increases in diesel and gasoline, which decelerated to 58.5% and 51.6%, respectively.
“While global oil prices remain elevated, Transport inflation has begun to slow down,” Department of Economy, Planning and Development (DEPDev) Secretary Arsenio Balisacan said in a statement.
Balisacan added that efforts to stabilize transport costs, such as fuel subsidies and supply stabilization measures, softened the impact of rising fuel prices.
Meanwhile, the Housing, Water, Electricity, Gas, and Other Fuels index slowed to 7.8% from 8.2% in the previous month.
Food inflation
Food inflation, which measures changes in the prices of commonly purchased household food items, also eased to 5.8% in May from 6.1% in April.
The slowdown was largely driven by slower price increases. Vegetables decelerated to 6.2% from 10.4%, fish slowed down to 8.8% from 9.4%, and meat inflation remained negative at -2.5%, compared to -1.9% in the previous month, amid oversupply in key producing areas.
Food and non-alcoholic beverages likewise helped the drive slow down, as inflation rate eased to 5.7% from 6%.
However, the inflation rate for flour, bread, and other cereal-based products climbed to 3.5% from 3%, pointing to the need for continued efforts in strengthening the country’s food supply and agricultural sector.
Major food supplies also continued to experience rising prices, with rice inflation climbing to 15.6%, and corn inflation rising to 25.5%.
Government’s goal
Balisacan said the government will continue to put effort into stabilizing prices and protecting Filipino households, including support for vulnerable sectors, fuel supply measures, and the push for renewable energy.
He mentioned that the government seeks to support farmers’ earnings and improve preparedness by reconvening El Niño Task Force efforts, cloud seeding, solar irrigation, and crop diversification programs.
“While the easing of inflation in May is encouraging, we recognize that price pressures remain elevated. Through the Unified Package for Livelihoods, Industry, Food, and Transport (UPLIFT) Committee, we will continue to monitor inflation and pursue measures to strengthen domestic food production, improve logistics and market efficiency, and ensure that vulnerable sectors receive timely support,” Balisacan said.
