Manila, Philippines – July 5, 2025 — The country’s headline inflation slightly increased to 1.4% in June, up from 1.3% in May, but remains manageable and within the projected range of the Bangko Sentral ng Pilipinas (BSP).
Despite the slight uptick, the inflation figure is still considered low and consistent with BSP’s expectations. For the first half of 2025, the average inflation rate stood at 1.8%, remaining below the government’s target range of 2% to 4%.
According to the Philippine Statistics Authority, food inflation declined, driven mainly by lower prices of vegetables and rice. This was attributed to improved agricultural production and government interventions aimed at stabilizing supply and prices.
However, inflation in the non-food sector rose, reflecting increased expenses in housing, water, electricity, gas, and other fuels.
The month-on-month inflation stayed at 0.2%, while core inflation—which excludes volatile food and energy prices—remained unchanged at 2.2% for the fourth consecutive month.
Looking ahead, economic authorities expect inflation to further ease in 2025 before gradually returning to the target range. The BSP reaffirmed its commitment to maintaining price stability to support sustainable economic growth.
