Inflation eases to 6.8% in May 2026 amid slower rise in fuel costs

MANILA, Philippines – Inflation in the Philippines eased to 6.8% in May as fuel prices rose at a slower pace, the Philippine Statistics Authority reported on Friday, June 5.

The slowdown comes after five straight months of increasing inflation, with the rate hitting a three-year high of 7.2% in April.

The country’s latest inflation print places the average at 4.5% year-to-date, still higher than the government’s target range of 2% to 4%.

National Statistician Dennis Mapa said diesel dropped to a 58.5% inflation rate in May from 122.7% in April. Inflation of gasoline prices also fell to 51.6% from 59.6%.

Meanwhile, inflation of food prices slightly slowed to 5.7% from 6%. Mapa noted that inflation of vegetable prices dropped to 6.2% from 10.4% while meat prices saw faster negative inflation at -2.5% from -1.9%.

Negative inflation or deflation means that the general price level for a particular commodity or service is going down.

However, Mapa noted that rice prices are increasing at a faster rate. Inflation of rice prices picked up to 15.6%, and it is expected to continue accelerating amid the looming El Niño.

“So ‘yung January to February, negative siya, pero tumataas at continuously na tumataas talaga. Positive territory na mula Marso hanggang itong May, and we expect it to be positive moving forward,” he said.

(So from January to February, rice inflation was negative, but it’s been continuously on the rise. It’s been in positive territory from March to May, and we expect it to be positive moving forward.)

In Metro Manila, inflation eased to 5% in May from April’s 5.5% amid the slower rise in fuel prices and food costs.

Meanwhile, inflation in areas outside Metro Manila fell to 7.1% from 7.7%. Central Visayas continued to log the fastest inflation rate at 10.8% while the Negros Island Region recorded the slowest print at 5.4%.

In a statement, the Department of Economy, Planning, and Development (DEPDev) said the overall slowdown relieved some financial pressure on Filipino households even as global oil prices remain elevated.

According to DEPDev Secretary Arsenio Balisacan, the government will continue to implement measures to further stabilize prices. These include continued fuel procurement, as well as the reconvening of the El Niño Task Force to implement cloud seeding operations and the rollout of crop diversification programs.

“While the easing of inflation in May is encouraging, we recognize that price pressures remain elevated. Thus, well-targeted government interventions are critical to cushioning the impact of domestic shocks such as weather disturbances and external headwinds such as ongoing geopolitical tensions, while preserving business continuity,” he said.

The 6.8% inflation rate recorded in May is also below the Bangko Sentral ng Pilipinas’ forecast of 7.1% to 7.9%. The BSP earlier pointed to rising commodity prices and the depreciation of the peso offsetting recent rollbacks in local fuel prices.

The central bank’s Monetary Board will meet on June 18 to discuss the country’s key interest rate, a tool which is often used to control inflation. – Rappler.com