Inflation in Central Visayas eased for a second consecutive month in June 2026, but the region continued to record the highest inflation rate in the country as elevated food prices kept overall consumer prices under pressure.
Data from the Philippine Statistics Authority (PSA) released Tuesday, July 7, 2026, showed the region’s headline inflation slowed to 10 percent in June from 10.8 percent in May. Despite the deceleration, Central Visayas remained well above the national inflation rate of 6.4 percent and posted the fastest price growth among the country’s 17 regions.
Food prices remain the main driver
The moderation was driven largely by slower inflation in food and non-alcoholic beverages, which eased to 14.2 percent in June from 15.2 percent in May. Food remained the biggest source of price pressures in the region, with inflation nearly three times the national average of 5.2 percent.
Housing-related costs remained unchanged, with inflation for housing, water, electricity, gas and other fuels steady at 4.9 percent in June.
Several commodity groups, however, registered faster price increases during the month. Inflation for alcoholic beverages and tobacco edged up to 5.1 percent from 5.0 percent, while clothing and footwear accelerated to 4.4 percent from 4.3 percent.
Prices also rose faster for furnishings, household equipment and routine household maintenance, where inflation inched up to 7.2 percent from 7.1 percent, and health, which increased to 3.7 percent from 3.4 percent.
National inflation slows to 6.4 percent
Nationally, headline inflation slowed to 6.4 percent in June from 6.8 percent in May as food inflation eased to 5.2 percent from 5.7 percent.
According to the Department of Economy, Planning and Development (DepDev), the slowdown was largely driven by lower transport inflation, which decelerated to 12.8 percent in June from 16.2 percent in May amid easing tensions in the Middle East. The rise in food and non-alcoholic beverage prices also slowed to 5.2 percent from 5.7 percent in May.
“Every percentage point drop in inflation matters to Filipino families,” said DepDev Secretary Arsenio Balisacan. “It means household budgets can go further, especially for poor families who spend a large share of their income on food and transportation.”
Balisacan said that the easing inflation pressures reflect both improving global conditions and the impact of coordinated government measures, such as targeted assistance for farmers, fisherfolk and transport service providers, as well as the lifting of toll fees for vehicles transporting agricultural produce.
“If we want stable prices, we need a stable food supply,” the government’s chief economist said. “Reducing losses from weather disturbances and other supply disruptions remains one of the most effective ways to protect both consumers and producers from future price shocks.”
BSP says inflation within forecast
The Bangko Sentral ng Pilipinas (BSP) said the June inflation outturn of 6.4 percent is within its forecast range of six to seven percent.
“Inflationary pressures remain strong. Global oil and fertilizer prices remain elevated in June and continue to drive domestic fuel and food prices. Rising core inflation indicates broadening price pressures and second-round effects, including higher inflation expectations,” the central bank said.
The BSP said the latest projections indicate a still elevated inflation path. “Average headline inflation is seen to remain above the three percent +/-1.0 ppt inflation target in 2026 and 2027. For 2028, inflation is seen to be close to the three-percent target,” the BSP said.
On Monday, July 6, BSP Gov. Eli Remolona Jr. said the Philippine economy can still absorb one more rate hike. Last month, the central bank’s Monetary Board raised its key policy rates by 25 basis points, citing persistent inflationary pressures amid elevated global oil and fertilizer prices.
Regional comparisons
Among the regions, the next highest inflation rates were recorded in Caraga at 8.9 percent, Davao Region at 8.1 percent and the Bangsamoro Autonomous Region in Muslim Mindanao at eight percent. The Bicol Region posted 7.6 percent, while Western Visayas registered 6.8 percent.
Central Visayas’ inflation rate was 3.6 percentage points higher than the national average, underscoring persistent price pressures in the region despite the recent slowdown. The region is more vulnerable to inflation than many other regions because it is highly dependent on imported goods, energy and food from other islands while experiencing strong demand from tourism and rapid urbanization.
