Philippine Inflation Eases But Rate Hikes Still Likely

Philippine headline inflation slowed to 6.4% in June, but rising core inflation and wage pressures lead ING to expect further BSP rate hikes.

Key Takeaways

• 1.Headline inflation in the Philippines eased to 6.4% in June, but core inflation accelerated to 4.4%.
• 2.ING expects the Bangko Sentral ng Pilipinas to deliver another 50bp of rate hikes in H2 2026.

Table of Contents

• Inflation undershoots expectations
• Transport leads declines, while core pressures persist
• We maintain our call of further rate hikes

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