The Investment & Capital Corporation of the Philippines (ICCP) announced that Philippine inflation in July 2025 has reached its lowest level in six years, driven by a welcome slowdown in the prices of utilities and food. This positive development, according to ICCP President and COO Jesus Mariano “Manny” Ocampo, is providing significant relief to households and boosting consumer spending.
“The softer prices have given Filipino households more breathing room and provided a lift to overall consumer spending,” said Ocampo. He described the current economic environment as a “healthy backdrop for consumers and, by extension, for domestic demand.”
Looking Ahead: Potential Inflationary Pressures and Strategic Outlook
While July’s figures are encouraging, Ocampo cautioned that inflation may see a slight reversal in August. He pointed to the late-July floods, which disrupted agricultural supply chains and could increase prices for vegetables and rice. The impact of recent tariffs on Philippine exports to the United States could also contribute to this upward pressure.
Ocampo anticipates that headline inflation could edge up to the 1.4%–1.5% range in the next two months, a trend consistent with seasonal patterns ahead of the holiday spending period. He noted that as long as inflation remains within the government’s 2% target, the environment will continue to support economic growth.
The benign inflation environment also provides the Bangko Sentral ng Pilipinas (BSP) with greater flexibility to implement further interest rate cuts. Ocampo foresees at least another 50-basis-point reduction by the end of the year, which should stimulate productive economic activities.
Addressing Global Trade and Investment for Long-Term Growth
On the trade front, Ocampo highlighted that the recent 19% U.S. tariffs will affect only about a third of Philippine exports, with key sectors like semiconductors and business process outsourcing (BPO) remaining largely unaffected. He sees an opportunity for trade negotiators to secure better access for Philippine food exports, which are a meaningful part of the country’s trade with the U.S.
To sustain long-term growth, Ocampo emphasized the critical need for both foreign and domestic investment in key sectors such as manufacturing, energy, and infrastructure. “Strategic capital deployment in these areas not only strengthens the economy but also creates employment opportunities, ensuring that growth is inclusive,” he stated.
Ocampo concluded by stressing that the President, as the country’s top diplomat and representative, is in a prime position to attract foreign investment. He believes that with the right investments, the Philippines can create more jobs and ensure the benefits of growth are felt across the entire economy.
