Inflation in the Philippines cooled to its lowest level in nearly five years in July 2025, pulled down by slower price increases for housing and a decline in food costs.
The Philippine Statistics Authority (PSA) said Tuesday the consumer price index (CPI) rose 0.9 percent in July 2025, down from 1.4 percent in June. This marks the lowest inflation rate since October 2019, which saw a 0.6-percent increase.
The seven-month national average inflation rate now stands at 1.7 percent.
The main driver behind the slowdown in July was a decrease in the cost of housing, water, electricity, gas and other fuels, which saw a 2.1-percent annual increase in July, compared to 3.2-percent the previous month.
Food prices also fell, with the food and non-alcoholic beverages index declining by 0.2 percent annually, a reversal from the 0.4 percent increase in June. The transport index dropped at a faster rate, falling 2.0 percent in July compared to a 1.6 percent decline in the prior month.
Other sectors that saw slower price growth in July included education services (4.3 percent from 5.3 percent) and personal care, and miscellaneous goods and services (2.3 percent from 2.4 percent).
Some commodity groups experienced higher inflation rates. These include alcoholic beverages and tobacco (4.2 percent), clothing and footwear (1.8 percent), health (2.6 percent), information and communication (0.5 percent), and restaurants and accommodation services (2.3 percent).
Food inflation, a significant component of the overall CPI, registered an annual decline of 0.5 percent in July, a sharp contrast to the 0.1 percent increase in June.
The primary reason for this was a steeper drop in the price of rice, which fell 15.9 percent year-on-year, and a faster decline in the cost of vegetables, tubers, plantains, cooking bananas and pulses (4.7 percent). Slower price growth was also noted for fruits and nuts (8.0 percent).
Core inflation, which excludes volatile food and energy prices, edged up to 2.3 percent in July from 2.2 percent in June, the PSA said.
Core inflation rate was 2.9 percent in July of the previous year.
