Philippines' June inflation rises slightly to 1.4%; food prices easing
MANILA, Philippines — The Philippines recorded a slight acceleration in inflation in June 2025, rising to 1.4% from 1.3% in May.
Headline inflation from January to June 2025 now stands at 1.8%, according to the Philippine Statistics Authority on Friday, July 4.
The PSA said the slight hike was due mainly to higher inflation in housing, water, electricity, gas and other fuels, which rose to 3.2% in June from 2.3% in May.
The main contributors to inflation were due to three baskets: housing, water, electricity, gas and other fuels, restaurants and accommodation services, and food and non-alcoholic beverages.
From May to June 2025, the PSA also recorded higher inflation in the following categories:
- Clothing and footwear: from 1.6% to 1.7%
- Furnishings, household equipment, and routine household maintenance: from 2.0% to 2.1%
- Education services: from 4.2% to 5.4%
- Restaurants and accommodation services: from 2.0% to 2.1%
Meanwhile, lower inflation rates were recorded for:
- Food and non-alcoholic beverages: from 0.9% to 0.4%
- Personal care and miscellaneous goods and services: from 2.5% to 2.4%
Food inflation
Food inflation fell sharply, dropping to 0.1% in June from 0.7% in May. The PSA attributed this to the easing prices of vegetables, tubers, plantains, cooking bananas, and pulses, which slowed to 2.8% from 3.4%.
Rice inflation posted a record low of -14.3%, the lowest since 2018. PSA Undersecretary Dennis Mapa cited the ongoing sale of ?20-per-kilo rice in selected outlets as a major contributor to the continued rice deflation.
Prices also declined for:
- Ready-made food and other unclassified food products: from 3.0% to 2.2%
- Corn, sugar, confectionery and desserts
However, the PSA recorded higher inflation in:
- Flour, bread, pasta, and other cereals: from 1.2% to 1.3%
- Meat and other parts of slaughtered land animals: from 7.9% to 9.1%
- Fish and other seafood: from 5.7% to 6.2%
- Milk, other dairy products, and eggs: from 4.9% to 5.1%
- Oils and fats: from 5.8% to 7.1%
- Fruits and nuts: from 8.3% to 9.7%
“The sharp decline in food inflation over the past year underscores the continued progress in our coordinated efforts to boost local production, improve logistics, and implement calibrated trade and biosecurity measures,” said Arsenio Balisacan, Secretary of Economy, Planning, and Development.
“We will sustain these interventions and complement them with targeted initiatives to ensure a continuous, stable supply and shield consumers from future price pressures,” he added.
Inflation projection
The Bangko Sentral ng Pilipinas said inflation is likely to remain within the government’s target range in 2025, but this may be offset by oil price spikes.
From 2026 to 2027, inflation is projected to remain between 2.0% and 4.0%, the central bank said.
“Global economic activity is showing signs of deceleration, influenced by uncertainty over U.S. trade policy and ongoing geopolitical conflict in the Middle East. These developments may contribute to slower domestic growth,” the BSP noted.
The country’s chief economist also anticipates possible external headwinds due to global uncertainties.
He said the government will remain focused on government cooperation for timely and appropriate interventions to protect the Filipino consumers from such shocks.
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