Finance Secretary Ralph G. Recto has reassured the public that the government is intensifying its efforts to support agricultural production and ensure food prices remain stable, despite a temporary uptick in inflation in August 2025. This increase was primarily driven by weather disturbances that affected vegetable and fish prices.
Inflation Remains Manageable
While headline inflation rose to 1.5% in August 2025 from 0.9% in July, it remains well within the government’s target range of 2.0% to 4.0%. The year-to-date average inflation rate is at a low 1.7%, demonstrating overall price stability.
Secretary Recto stated, “Even though we’ve maintained low inflation, the government is strengthening measures to support production and prepare in advance for the effects of bad weather on our crops and fisheries. It is our continued priority to protect the value of every peso earned by Filipino families against the rising cost of essential goods.”
The slight increase in August was attributed to food inflation, which rose by 0.9%. This was mainly due to higher prices for vegetables, which increased by 10.0% year-on-year, and fish, which saw a 9.5% year-on-year increase, both stemming from adverse weather conditions.
Despite these increases, rice prices continued their sharp decline, dropping by 17.0%—the steepest drop since 1995. This significant decrease has especially benefited low-income households, with inflation for the bottom 30% contracting by 0.6% in August, providing three consecutive months of relief for vulnerable families.
Comprehensive Government Interventions
To counter the impact of weather shocks and stabilize food prices, the government has launched several key initiatives:
Agricultural Support: The Department of Agriculture (DA) is providing farmers and fisherfolk with free seeds and seedlings for rice, corn, and vegetables. It is also distributing rice from the National Food Authority (NFA) to affected areas.
Financial Assistance: The government is tapping the Quick Response Fund (QRF) to accelerate recovery efforts. This includes offering a zero-interest loan of up to PHP 25,000 through the Survival and Recovery (SURE) Loan Program and providing indemnification to affected farmers via the Philippine Crop Insurance Corporation (PCIC).
Future Preparedness: The DA will launch a command center in November to improve data-driven supply chain management and enhance forecasting, ensuring a faster response to future disruptions.
In addition to food price management, the government is also working to control non-food inflation and reduce energy and transport costs. The Department of Energy (DOE) is:
Fast-tracking Energy Reforms: Initiatives include the Net-Metering Advancement Program, which reduces rooftop solar permitting time from 360 to 90 days; the Lifeline Rate Expansion Program for subsidized electricity access; and the Accelerated Power Plant Completion Program, which aims to complete 220 projects by 2028 to boost energy supply.
Expanding Electric Vehicle (EV) Infrastructure: The DOE is targeting 7,300 EV charging stations by 2028, a significant increase from the current 1,100. This program, under the Electric Vehicle Industry Development Act (EVIDA), promotes wider EV adoption to reduce reliance on costly oil imports and help alleviate transport costs.
