By Dean Aubrey Caratiquet
The Philippine Statistics Authority (PSA) has shared another breakthrough regarding the status of the country’s overall inflation rate on Tuesday, which has dipped to 0.9% from 1.4% in June 2025, which stands as the lowest inflation rate recorded since October 2019 (0.6%).
This decline was brought about by a combination of factors, from a sustained drop in rice prices to sustained deflation in prices of other food products such as corn (-17.7% from -16.0%), vegetables and tubers (-1.9% from +0.1%), and meat (8.8% from 9.1%).
Moreover, non-food inflation was also subdued, supported by deflation in the operation of personal transport (-7.3% from -6.9%), as global oil prices remained muted, and the significant deceleration in electricity inflation (1.3% from 7.4%) continued due to lower generation charges and deferred billing adjustments.
These changes have significantly alleviated the financial burden of low-income households, a welcome improvement from the 5.8% inflation rate experienced by this demographic in the same period last year.
Sustaining economic growth
Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan, meanwhile, welcomed the continued moderation in inflation, stating, “The sustained drop in rice prices and the easing of inflation for low-income households are clear signs that our 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.”
The Economy chief added, “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.”
In the wake of severe weather disturbances in July, the Philippine Atmospheric, Geophysical, and Astronomical Services Administration (PAGASA) forecasts a relatively favorable climate outlook, which may bode well for the resumption of stable agricultural production.
This is complemented by the Department of Agriculture’s (D.A.) various initiatives, such as allocating P495.4 million worth of agricultural inputs, activation of its Quick Response Fund, and the expected arrival of 150,000 additional AVAC live vaccine doses for African swine fever (ASF) from Vietnam this month, which would ensure swift recovery in areas affected by tropical storms Crising, Dante, and Emong, and the southwest monsoon.
Targeted beneficiaries of the Department of Social Welfare and Development’s (DSWD) Walang Gutom Program (WGP) can also purchase rice at P20 per kilo through the Kadiwa ng Pangulo initiative.
“Statistical improvements are meaningful only when they translate into better lives for ordinary Filipinos. Thus, we are committed to sustaining this positive momentum and ensuring that protecting the purchasing power of Filipinos remains our top priority as we move to the second half of this administration,” Balisacan said. (with report from Denisse Osorio/PTV News)
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