Government measures to stabilize food supply, boost agriculture, and improve logistics helped ease food inflation to 0.1 percent in June 2025, down from 0.7 percent in May and 6.5 percent during the same period last year, according to the Department of Economy, Planning, and Development (DEPDev).
The Philippine Statistics Authority reported on Friday (July 4) that the headline inflation rose slightly to 1.4 percent in June, from 1.3 percent in May. This brings the year-to-date average inflation to a low and manageable 1.8 percent, well within the government’s target range of 2.0 to 4.0 percent for the year.
Significantly, rice recorded a steeper deflation of -14.3 percent in June 2025, even lower than the -12.8 percent deflation recorded in May 2025. Furthermore, inflation for the bottom 30 percent or among poorer households stood at -0.4 percent.
The slight uptick in headline inflation was primarily driven by higher non-food inflation (1.9% from 1.5%), with faster price increases observed in electricity (7.4% from 2.8%) and education (5.4% from 4.2%). Supply constraints led to higher inflation for meat (9.1% from 7.9%) and fish (6.2% from 5.7%). Meanwhile, the operation of personal transport (-6.9% from -10.1%) registered slower deflation.
In a statement: “The sharp decline in food inflation over the past year underscores the continued progress in our coordinated efforts to boost local production, improve logistics, and implement calibrated trade and biosecurity measures. We will sustain these interventions and complement them with targeted initiatives to ensure a continuous, stable supply and shield consumers from future price pressures,” said Economy, Planning, and Development Secretary Arsenio M. Balisacan.
To further strengthen food supply chains, the Department of Agriculture (DA) will intensify the implementation of industry recovery and expansion programs, such as the Swine Industry Recovery Project (SIRP) and Livestock Economic Enterprise Development. These initiatives aim to accelerate the rehabilitation of the hog industry and restore the pre-African Swine Fever hog population levels. Under SIRP, the DA will procure breeding stock for distribution to select beneficiaries, including private farms, LGUs, and farmers’ cooperatives.
In support of the onion industry, the DA will establish the country’s first Onion Research and Extension Center in Bongabon, Nueva Ecija. The center will focus on developing effective methods to combat pests and diseases, enhance seed quality, and increase farm yields.
Meanwhile, the Department of Energy has partnered with private oil companies to offer fuel discounts to motorists affected by oil price fluctuations amid geopolitical uncertainties. As of June 30, 2025, nine oil companies have committed to providing fuel discounts to drivers of public utility vehicles (PUVs), non-PUVs, and transportation network vehicles (TNVs). The DOE continues to coordinate with oil companies to expand the number of participating gas stations nationwide.
“While the continued easing of food inflation is encouraging, we will maintain our vigilance against possible external and domestic risks. Volatile global markets and climate-related disruptions affecting fuel and electricity costs continue to threaten price stability. We will remain focused on strengthening interagency coordination in implementing timely, targeted, and evidence-based interventions to safeguard the purchasing power of Filipino households, ensuring that the much-needed support reaches the most vulnerable sectors of the country,” Balisacan concluded.
