The rate of increase in overall prices, otherwise known as inflation, in the country marginally hiked to 1.4 percent in June 2025 from 1.3 percent the previous month, bringing the average inflation rate from January to June 2025 to 1.8 percent.
A report by the Philippine Statistics Authority (PSA) said the uptrend in the overall inflation in June 2025 was primarily brought about by the higher year-on-year increase in the index of housing, water, electricity, gas and other fuels at 3.2 percent during the month from 2.3 percent in May 2025.
The slower annual decrease of transport at 1.6 percent in June 2025 from an annual decline of 2.4 percent in the previous month also contributed to the uptrend.
In addition, higher inflation rates were observed during month in commodity groups – clothing and footwear; furnishings, household equipment and routine household maintenance; education services; and, restaurants and accommodation services.
On the contrary, lower inflation rates in June 2025 were noted in food and non-alcoholic beverages at 0.4 percent and personal care, and miscellaneous goods and services at 2.4 percent from their respective inflation rates of 0.9 percent and 2.5 percent in the previous month.
The indices of the rest of the commodity groups retained their respective previous month’s annual growth rates. Food Inflation Food inflation at the national level eased to 0.1 percent in June 2025 from 0.7 percent in the previous month.
In June 2024, food inflation was higher at 6.5 percent. The deceleration of food inflation in June 2025 was mainly brought about by the annual decrease in vegetables, tubers, plantains, cooking bananas and pulses at 2.8 percent from an annual increase of 3.4 percent in the previous month.
This was followed by rice with a faster annual decrease of 14.3 percent during the month from 12.8 percent in May 2025. Ready-made food and other food products not elsewhere classified also contributed to the downtrend with a slower annual increment of 2.2 percent inflation rate in June 2025 from 3.0 percent in May 2025.
In addition, faster annual decline was noted in the indices of corn at 14.5 percent, and sugar, confectionery and desserts at 0.7 percent in June 2025 from their respective year-on-year decreases of 10.6 percent and 0.6 percent in May 2025.
Core inflation, which excludes selected food and energy items, was recorded at 2.2 for the fourth consecutive month. In June 2024, core inflation rate was registered at 3.1 percent.
