Inflation rate snaps 4-month slowdown, accelerates to 1.4% in June

The Philippines’ inflation rate accelerated in June, snapping a four-month down streak, on the back of a faster increase in utility costs during the period, according to the Philippine Statistics Authority.

At a press conference in Quezon City on Friday, National Statistician and PSA chief Claire Dennis Mapa reported that last June’s inflation print —which measures the rate of growth in consumer goods and services costs— moved up slightly to 1.4% from 1.3% in May.

This was consistent with the Bangko Sentral ng Pilipinas’ projection that last month’s inflation rate would clock in within the 1.1% to 1.9% range.

June’s inflation rate brought the year-to-date rate to 1.8%, still below the government’s comfortable inflation rate ceiling of 2% to 4% for 2025.

“Ang pangunahing dahilan ng mas mataas na antas ng inflation nitong Hunyo 2025 kaysa noong Mayo 2025 ay ang mas mabilis na pagtaas ng presyo ng Housing, Water, Electricity, Gas and Other Fuels sa antas na 3.2%. Ito ay may 63.3% share sa pagtaas ng pangkalahatang,” Mapa said.

(The main reason for the higher inflation rate in June 2025 versus May 2025 was the faster increase in the prices of Housing, Water, Electricity, Gas and Other Fuels to 3.2%. These had a share of 63.3% to the overall inflation rate.) 

This was amid the spike seen in electricity cost at 7.4% from 2.8% in the prior month.

Also contributing to the uptrend was the slower contraction in the Transport index at -1.6% from -2.4% month-on-month, with a share of 23.8% to the overall inflation hike.

Education Services, amid the opening of the school year, saw an increase of 5.4% from 4.2%, contributing 7.7% to June’s inflation rate acceleration.

Food inflation

Despite the overall inflation uptick, food inflation —which tracks the price movements of food items in a "basket" commonly purchased by households— eased to 0.1% from 0.7% in May and from 6.5% in June 2024.

This was on the back of a steeper deflation in rice at -14.3% from -12.8% in May.

Vegetables, tubers, plantains, cooking bananas and pulses saw a rate of 2.8%, down from 3.4% in the prior month.

Ready-made food and other food products also contributed to the downtrend in food inflation as its inflation print slowed to 2.2% from 3% month-on-month.

Corn likewise contracted further to -14.5% from -10.6% while sugar, confectionery and desserts also deflated to -0.7% from -0.6% in May.

However, higher inflation prints were seen in the indices of the following food groups during the month:

• Flour, bread and other bakery products, pasta products, and other cereals -  1.3% from 1.2%
• Meat and other parts of slaughtered land animals -  9.1% from 7.9%
• Fish and other seafood -  6.2% from 5.7%
• Milk, other dairy products and eggs -  5.1% from 4.9%
• Oils and fats -  7.1% from 5.8% 
• Fruits and nuts -  9.7% from 8.3%

“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. 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 Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan. 

Food supply, fuel interventions

To further strengthen food supply chains, the Department of Agriculture will intensify the implementation of industry recovery and expansion programs, such as the Swine Industry Recovery Project (SIRP) and Livestock Economic Enterprise Development, according to the DEPDev.

The Socioeconomic Department said the initiatives aim to accelerate the rehabilitation of the hog industry and restore the pre-African Swine Fever hog population levels. 

In particular, under SIRP, the DA will procure breeding stock for distribution to select beneficiaries, including private farms, LGUs, and farmers’ cooperatives.  

In support of the onion industry, the DA will also establish the country’s first Onion Research and Extension Center in Bongabon, Nueva Ecija. 

The center will focus on developing effective methods to combat pests and diseases, enhance seed quality, and increase farm yields. 

The DEPDev likewise noted that the Department of Energy has partnered with private oil companies to offer fuel discounts to motorists affected by oil price fluctuations amid geopolitical uncertainties.

As of June 30, 2025, nine oil companies have committed to providing fuel discounts to drivers of public utility vehicles (PUVs), non-PUVs, and transportation network vehicles (TNVs). 

The DOE is continuously coordinating 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. 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,” Balisacan said. —AOL, GMA Integrated News