Inflation slowest in nearly 6 years

MANILA, Philippines, August 6 ------ Consumer prices in July went up at the slowest pace in almost six years as utility costs eased and food prices declined.

National Statistician Dennis Mapa said in a press conference yesterday that headline inflation – the change in prices of goods and services typically purchased by Filipinos – slowed to 0.9 percent in July from the previous month’s 1.4 percent and the 4.4 percent registered in the same month last year.

The July inflation print is the lowest since the 0.6 percent recorded in October 2019. It is also within the 0.5 to 1.3 percent forecast of the Bangko Sentral ng Pilipinas (BSP) for July. The lower inflation in July was primarily due to the slower increase in prices of housing, water, electricity, gas and other fuels at 2.1 percent from 3.2 percent in June. Also contributing to the downtrend was the decline in food and non-alcoholic beverages prices at 0.2 percent in July from the 0.4 percent uptick in June.

Inflation for food alone registered a 0.5-percent decline in July from a 0.1-percent increase in the previous month, driven primarily by the faster drop in rice prices at 15.9 percent from 14.3 percent in June 2025. “In the next four months, we’ll still be seeing negative inflation for rice,” Mapa said.

From January to July, inflation averaged 1.7 percent, below the government’s two to four percent target for the year. Department of Economy, Planning and Development Secretary Arsenio Balisacan said the continued moderation in inflation shows that the government’s interventions are working. “This not only helps Filipinos preserve the value of their peso but also builds confidence for businesses and consumers to plan ahead,” Balisacan said. “While we expect the overall inflation for 2025 to remain favorable and supportive of domestic demand, we remain vigilant against external risks, including global policy shifts and geopolitical tensions,” he said.

Moody’s Analytics economist Sarah Tan said that while inflation is likely to remain low, it is not expected to fall further in the coming months as the latest result was largely due to a high base effect. She also said inflation is expected to remain stable for the rest of the year, but risks remain including weather disturbances that could affect food harvest output, as well as global oil prices that may pose a threat if geopolitical tensions escalate. “Still, barring sustained supply shocks, we expect inflation to scratch the lower bound of the BSP’s two to four percent target range for the rest of the year,” Tan said.

As the country moves to the second half of the Marcos administration, Balisacan said the government is committed to sustaining the positive development and focusing on protecting Filipinos’ purchasing power. “The economic team will continue to pursue measures that keep prices stable and make everyday life easier for every Filipino,” Special Assistant to the President for Investment and Economic Affairs Frederick Go said.

Source: philstar.com