The Department of Economy, Planning, and Development (DEPDev) announced that the Philippines’ overall inflation rate has eased to 0.9 percent in July 2025, the lowest since October 2019. This significant drop, reported by the Philippine Statistics Authority (PSA), brings the year-to-date average inflation to a stable 1.7 percent.
This positive trend is most impactful for the country’s most vulnerable citizens. Inflation for the bottom 30 percent income group has reversed sharply, dropping to -0.8 percent in July 2025 from a high of 5.8 percent a year ago.
Key Drivers of Easing Inflation
The sustained decline in rice prices is the primary factor behind the improved inflation outlook. Rice deflation has continued for the 13th consecutive month, with the price index dropping to 99.4 in July 2025, nearing its pre-price spike value.
- Food and Non-Alcoholic Beverages: Deflation for this category was -3.0 percent for the lowest income households, driven by significant price drops in rice (-17.8%), corn (-17.7%), and vegetables and tubers (-1.9%).
- Non-Food Inflation: This category also remained subdued due to stable global oil prices and a sharp slowdown in electricity inflation (1.3% from 7.4% in June).
Government Interventions Show Results
DEPDev Secretary Arsenio M. Balisacan credits these positive results to the government’s strategic interventions. “The sustained drop in rice prices and the easing of inflation for low-income households are clear signs that our interventions are working,” he stated. “This helps Filipinos preserve the value of their peso and builds confidence for businesses and consumers.”
In his statement, Balisacan also highlighted the government’s proactive measures to support agricultural stability and consumer welfare:
- Agricultural Support: The Department of Agriculture (DA) has allocated PHP495.4 million in agricultural inputs to help farmers recover from recent storms. The DA is also prepared to offer quick response funds and interest-free loans to affected farmers and fisherfolk.
- African Swine Fever (ASF) Control: The arrival of 150,000 live vaccine doses from Vietnam will bolster efforts to control ASF, which has been successfully contained to just 28 affected barangays as of July 11, a significant drop from 534 in October 2024.
- Targeted Aid: The Department of Social Welfare and Development’s (DSWD) Walang Gutom Program will allow beneficiaries to purchase rice at PHP20 per kilo through the Kadiwa ng Pangulo initiative.
Looking ahead, Balisacan said, “While we expect the overall inflation for 2025 to remain favorable, we remain vigilant against external risks. Statistical improvements are meaningful only when they translate into better lives for ordinary Filipinos. We are committed to sustaining this positive momentum and ensuring that protecting the purchasing power of Filipinos remains our top priority.”
