Annual inflation in the Philippines edged up to 1.4 percent in June 2025 from 1.3 percent in May, driven by higher non-food costs, the Philippine Statistics Authority (PSA) said Friday.
The average inflation rate for the first half of 2025 stands at 1.8 percent. In June 2024, inflation was significantly higher at 3.7 percent.
The Department of Economy, Planning and Development (DEPDev) attributed the slight increase in headline inflation to a rise in non-food inflation, which climbed to 1.9 percent from 1.5 percent. This was fueled by faster price increases in electricity, up to 7.4 percent from 2.8 percent, and education, rising to 5.4 percent from 4.2 percent.
Supply constraints led to higher inflation for meat (9.1 percent from 7.9 percent) and fish (6.2 percent from 5.7 percent). Meanwhile, the cost of personal transport operation registered slower deflation at -6.9 percent compared to -10.1 percent previously.
Food inflation, however, eased to 0.1 percent in June 2025 from 0.7 percent in May. In June 2024, food inflation was 6.5 percent. DEPDev highlighted that government measures to stabilize food supply, boost agriculture, and improve logistics contributed to this deceleration.
Rice recorded a steeper deflation of -14.3 percent in June 2025, a further drop from the -12.8 percent deflation in May. Inflation for the bottom 30 percent of households, or poorer households, stood at -0.4 percent.
“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,” DEPDev Secretary Arsenio Balisacan said.
“We will sustain these interventions and complement them with targeted initiatives to ensure a continuous, stable supply and shield consumers from future price pressures,” said Balisacan.
Higher inflation rates were also observed in clothing and footwear (1.7 percent from 1.6 percent), furnishings, household equipment and routine household maintenance (2.1 percent from 2.0 percent), and restaurants and accommodation services (2.1 percent from 2.0 percent).
Lower inflation rates in June were noted in food and non-alcoholic beverages (0.4 percent from 0.9 percent) and personal care, and miscellaneous goods and services (2.4 percent from 2.5 percent). Other commodity groups maintained their previous month’s annual growth rates.
The deceleration of food inflation in June was driven by an annual decrease in vegetables, tubers, plantains, cooking bananas and pulses (2.8 percent from a 3.4 percent increase in May). This was followed by rice with its accelerated annual decrease. Ready-made food and other food products not elsewhere classified also contributed with a slower annual increase of 2.2 percent from 3.0 percent in May.
Faster annual declines were recorded in the indices of corn (14.5 percent from 10.6 percent) and sugar, confectionery and desserts (0.7 percent from 0.6 percent).
Core inflation, which excludes selected food and energy items, remained at 2.2 percent for the fourth consecutive month. In June 2024, core inflation was 3.1 percent.
The Department of Agriculture (DA) affirmed its commitment to intensify industry recovery and expansion programs, including the Swine Industry Recovery Project (SIRP) and Livestock Economic Enterprise Development. These initiatives aim to restore hog population levels to pre-African Swine Fever figures. Under SIRP, the DA will procure breeding stock for distribution to private farms, local government units (LGUs), and farmers’ cooperatives.
In support of the onion industry, the DA plans to establish the country’s first Onion Research and Extension Center in Bongabon, Nueva Ecija, focusing on pest and disease combat, seed quality, and yield enhancement.
Meanwhile, the Department of Energy (DOE) has collaborated with private oil companies to offer fuel discounts to motorists affected by oil price fluctuations. As of June 30, 2025, nine oil companies have committed to providing discounts to drivers of public utility vehicles (PUVs), non-PUVs, and transportation network vehicles (TNVs). The DOE continues to coordinate with oil companies to expand the number of participating gas stations nationwide.
“While the continued easing of food inflation is encouraging, we will maintain our vigilance against possible external and domestic risks,” Balisacan said.
“Volatile global markets and climate-related disruptions affecting fuel and electricity costs continue to threaten price stability. We will remain focused on strengthening interagency coordination in implementing timely, targeted, and evidence-based interventions to safeguard the purchasing power of Filipino households, ensuring that the much-needed support reaches the most vulnerable sectors of the country,” he said.