Manila: The country's inflation, or the rate of increase in the prices of goods and services, reversed its path in July 2025, decelerating to 0.9 percent from the previous month's 1.4 percent. This change was driven primarily by slower increases in electricity rates and prices of liquefied petroleum gas (LPG).
According to Philippines News Agency, the latest inflation figure, the lowest since October 2019's 0.6 percent, brought the average for the first seven months of the year to 1.7 percent, still below the government's target range of 2 to 4 percent. National Statistician Claire Dennis Mapa, in a briefing, stated that food and non-alcoholic beverages also contributed to the lower inflation rate in July due to reduced price increases for items such as rice, vegetables, tubers, and cooking bananas, as well as fuel prices.
Mapa noted that the continued decline in rice prices is expected to result in a slower uptick for this particular item for the rest of the year, despite proposals to halt rice importation and increase tariffs to protect local farmers. The government had previously increased rice importation and lowered tariffs from 35 percent to 15 percent, starting in the second half of 2024 until 2028, to address rice price hikes. This led to a reduction in rice inflation, from 14.7 percent in August 2024 to 0.8 percent in December last year. Mapa forecasted rice inflation to remain in negative territory for the next four months.
In terms of the impact of recent typhoons, Mapa indicated that vegetable prices have inched up in the latter half of July, which is typical during the typhoon season. While overall inflation is expected to remain low, he warned of threats such as higher pork prices due to African swine fever, increased demand for chicken meat as an alternative to pork, and rising fish prices.
The Department of Economy, Planning, and Development (DEPDev) noted that the inflation rate for low-income households as of July fell to -0.8 percent from the previous year's 5.8 percent, with the government offering cheaper rice to the vulnerable sector. In addition to rice, slower price increases in corn and vegetables contributed to the lower inflation rate for the bottom 30 percent income group.
DEPDev Secretary Arsenio Balisacan remarked on the effectiveness of government interventions in sustaining the drop in rice prices and easing inflation for low-income households. He emphasized that while the overall inflation for 2025 is expected to remain favorable, vigilance against external risks such as global policy shifts and geopolitical tensions is necessary.
Reports from the Department of Agriculture (DA) indicated that approximately PHP495.4 million worth of agricultural inputs, including rice, corn, and vegetable seeds, were allocated for victims of recent calamities. The DA also maintains a Quick Response Fund and offers interest-free loans of up to PHP25,000 through the Survival and Recovery (SURE) Loan Program. Additionally, 150,000 AVAC live vaccine doses from Vietnam are expected to address the ASF problem in several areas nationwide.
Balisacan asserted that statistical improvements must lead to better lives for ordinary Filipinos, stating the government's commitment to sustaining positive momentum and prioritizing the protection of Filipinos' purchasing power as the administration progresses into its second half.
