After back-to-back months of shrinking, the headline inflation of the Philippines inched up to 1.4% for the month of June 2025, according to a news article by the Philippine News Agency (PNA). By comparison, May 2025 inflation rate was 1.3%.
To put things in perspective, posted below is an excerpt from the PNA news article. Some parts in boldface…
Headline inflation continued to remain below the lower end of the government’s target range in June, despite a slight uptick due to a faster increase in non-food prices.
In a briefing on Friday, National Statistician Dennis Mapa said headline inflation settled at 1.4 percent in June from 1.3 percent in May.
This brings the year-to-date average inflation to 1.8 percent, well within the government’s target range of 2 percent to 4 percent for the year.
Mapa said the slight uptick in headline inflation was driven by higher non-food inflation (1.9 percent from 1.5 percent), with faster price increases observed in electricity (7.4 percent from 2.8 percent) and education (5.4 percent from 4.2 percent). Food inflation, however, eased to 0.1 percent during the month from 0.7 percent in May.
Mapa said the deceleration of food inflation in June was mainly due to the annual decrease in the prices of vegetables, tubers, plantains, cooking bananas, and pulses at 2.8 percent from an annual increase of 3.4 percent in the previous month. Rice deflation also hit a record low of 14.3 percent in June.
Mapa said the rollout of the government’s PHP20 per kg. rice program also contributed to the decline, especially in regular-milled rice prices.
In a separate statement, the Department of Economy, Planning, and Development (DEPDev) said government measures to stabilize food supply, boost agriculture, and improve logistics helped ease food inflation during the month.
“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.”
To further strengthen food supply chains, DEPDev said the Department of Agriculture (DA) would intensify the implementation of industry recovery and expansion programs, such as the Swine Industry Recovery Project and Livestock Economic Enterprise Development, to accelerate the rehabilitation of the hog industry and restore the pre-African Swine Fever hog population levels.
The DA will also establish the country’s first Onion Research and Extension Center in Bongabon, Nueva Ecija for the development of effective methods to combat pests and diseases, enhance seed quality, and increase farm yields.
The Department of Energy, meanwhile, has partnered with private oil companies to offer fuel discounts to motorists affected by oil price fluctuations amid geopolitical uncertainties.
Let me end this post by asking you readers: What is your reaction to this recent development? Do you think inflation rate of the Philippines will be able to settle below 2% per month until the end of the year? If you are managing a local business, how much of an impact did inflation have on your business?
You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.
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