Manila: Finance Secretary Ralph Recto announced that the deflation recorded for the bottom 30 percent income households at 0.4 percent in June 2025 demonstrates the government's ongoing efforts to alleviate the burden on the most vulnerable and lift more Filipinos out of poverty. "Magandang balita po ito sa lahat. Ibig sabihin, mabisa ang mga hakbang ng gobyerno para panatilihing mababa at abot-kaya ang presyo ng mga bilihin lalo na para sa mas higit na nangangailangan (This is good news for everyone. It means that government measures to keep the prices of goods low and affordable are effective, especially for those who need it most)," Recto said in a statement Friday. "Hindi rin po lingid sa ating kaalaman na marami pa rin sa ating mga kababayan ang nagugutom, ayon sa SWS survey. Kaya mas lalo pa naming paiigtingin ang aming mga ginagawa para maiahon ang bawat pamilyang Pilipino sa kahirapan. (It is also no secret to us that many of our countrymen are still hungry, according to the SWS survey. That is why we will intensify our efforts to lift every Filipino family out of poverty)."
According to Philippines News Agency, headline inflation stood at 1.4 percent in June, well within the government's 2 to 4 percent target. Food inflation, a significant factor in household spending, notably slowed to 0.1 percent, primarily due to year-on-year decreases in the prices of vegetables, rice, corn, and sugar, along with a slower increase in the prices of ready-made food and other food products.
Despite the easing inflation, Recto emphasized that the government remains vigilant about potential price pressures, particularly from higher electricity rates, pork prices affected by the African swine fever (ASF), housing rentals, and inflation in restaurants, caf©s, and poultry meat.
The government is actively implementing reduced rice tariffs and lowering the maximum suggested retail price (MSRP) on imported rice to PHP43 per kg. beginning July 16 to ensure that Filipinos continue to have access to affordable rice. Through the Department of Agriculture's 'Benteng Bigas, Meron Na!' program, Recto highlighted that affordable rice is reaching low-income families and overseas Filipino workers, while also boosting demand for locally-produced rice and dairy.
Additionally, the government is rolling out PHP29 per kg. rice through a nationwide partnership between the National Irrigation Administration and local government units, sourced directly from local farmer cooperatives to ensure fair prices for both producers and consumers. To further protect local farmers' interests, the National Food Authority is tightening procurement rules for palay (unhusked rice) to ensure greater transparency and accountability.
In anticipation of potential fuel price hikes due to geopolitical tensions, Recto mentioned that the government is prepared to implement fuel subsidy programs for various sectors to alleviate the burden on those most affected.
