June inflation remains low at 1.4% with government's food price measures

Cheaper Rice. Indigent families and other vulnerable sectors in Cavite are among the latest to benefit from President Ferdinand R. Marcos Jr.’s initiative to make rice accessible to millions of Filipino families at an affordable price of PHP20 per kg. The Philippine Statistics Authority said Friday (July 4, 2025) that rice recorded a deflation of 14.3 percent in June. (Photo courtesy PCO)

Headline inflation continued to remain below the lower end of the government's target range in June, despite a slight uptick due to a faster increase in non-food prices. In a briefing on Friday, National Statistician Dennis Mapa said headline inflation settled at 1.4 percent in June from 1.3 percent in May. This brings the year-to-date average inflation to 1.8 percent, well within the government’s target range of 2 percent to 4 percent for the year.

Mapa said the slight uptick in headline inflation was driven by higher non-food inflation (1.9 percent from 1.5 percent), with faster price increases observed in electricity (7.4 percent from 2.8 percent) and education (5.4 percent from 4.2 percent). Food inflation, however, eased to 0.1 percent during the month from 0.7 percent in May.

Mapa said the deceleration of food inflation in June was mainly due to the annual decrease in the prices of vegetables, tubers, plantains, cooking bananas, and pulses at 2.8 percent from an annual increase of 3.4 percent in the previous month. Rice deflation also hit a record low of 14.3 percent in June.

Mapa said the rollout of the government's PHP20 per kg. rice program also contributed to the decline, especially in regular-milled rice prices. In a separate statement, the Department of Economy, Planning, and Development (DEPDev) said government measures to stabilize food supply, boost agriculture, and improve logistics helped ease food inflation during the month.

DEPDev Secretary Arsenio Balisacan emphasized the importance of sustained interventions to ensure stable food supply and shield consumers from price pressures. The Department of Agriculture (DA) will intensify industry recovery and expansion programs to rehabilitate the hog industry and establish the country’s first Onion Research and Extension Center in Bongabon, Nueva Ecija.

The Department of Energy has partnered with private oil companies to offer fuel discounts to motorists affected by oil price fluctuations. Balisacan highlighted the need for continued vigilance against external and domestic risks that could impact price stability.

According to the source: Philippine News Agency.