Inflation eased to 6.8% in May from 7.2% in April 2026, driven mainly by fuel price rollbacks that helped reduce price pressures on transport, food, and utilities, the Philippine Statistics Authority (PSA) reported on Friday.
The latest inflation rate remained above the government's 2.0% to 4.0% target range, but was lower than the Bangko Sentral ng Pilipinas' (BSP) forecast of 7.1% to 7.9% and economists' median estimate of 7.8%.
According to the PSA, slower annual increases in the costs of transport, food, housing, water, gas, and other fuels contributed to the inflation.
Core inflation, which excludes selected food and energy items, accelerated to 4.1% in May from 3.9% in the previous month.
Rizal Commercial Banking Corporation Chief Economist Michael Ricafort attributed the easing inflation rate to diesel and gasoline price rollbacks, which also eased pressures on food, transport, and utility costs.
He also cited government subsidies and other non-monetary measures as factors that helped temper inflation.
For the first five months of the year, headline inflation averaged 4.5%, while core inflation stood at 3.4%.
Socioeconomic Planning Secretary Arsenio Balisacan welcomed the May inflation results even as he acknowledged ongoing issues.
“While the easing of inflation in May is encouraging, we recognize that price pressures remain elevated,” he said.
Balisacan said fuel assistance programs for public utility vehicle operators and efforts to ensure adequate fuel supply helped contain transport inflation, adding that timely and targeted government measures continue to cushion Filipino households from external economic shocks.
Written by Saydie Noquera
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