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Advocates Philippines
Philippine Inflation Edges Up Slightly In June, Driven By Housing And Services
Photo credit: DA
The Philippines’ headline inflation rose modestly in June 2025 to 1.4 percent, up from 1.3 percent in May. This brings the average inflation rate for the first half of the year to 1.8 percent, a significant drop from the 3.7 percent recorded in June 2024.
The slight uptick in June was mainly due to higher year-on-year increases in housing, water, electricity, gas, and other fuels, which grew 3.2 percent from 2.3 percent in the previous month. A slower decline in transport costs, which fell by 1.6 percent compared to a 2.4 percent drop in May, also added to the upward pressure. Other commodity groups, including clothing and footwear, furnishings and household maintenance, education services, and restaurant and accommodation services, posted higher annual growth rates as well.
On the other hand, food and non-alcoholic beverages saw a lower inflation rate at 0.4 percent, down from 0.9 percent in May, helping temper overall price growth. Personal care and miscellaneous goods and services also registered a slightly lower rate at 2.4 percent. Most other commodity groups maintained their previous growth rates.
Among all categories, housing, water, electricity, gas, and other fuels contributed nearly half of the overall inflation in June, followed by restaurants and accommodation services and food and non-alcoholic beverages.
Food inflation at the national level eased further to just 0.1 percent in June, from 0.7 percent a month earlier and far below the 6.5 percent recorded a year ago. The slowdown in food prices was led by declines in vegetables, rice, corn, and sugar, as well as more modest increases in ready-made food. However, higher annual rates were still observed in several food groups, including meat, fish, dairy products, oils, and fruits.
Core inflation, which excludes selected food and energy items, remained steady at 2.2 percent for the fourth month in a row. This is lower than the 3.1 percent registered in June 2024, indicating relatively stable underlying price pressures despite fluctuations in volatile items.
Across regions, inflation trends diverged. In the National Capital Region (NCR), inflation accelerated to 2.6 percent in June from 1.7 percent in May. This was driven largely by a sharp increase in housing and utilities as well as slower declines in transport costs. Modest increases were also noted in food, alcoholic beverages, health, education, and restaurant services.
Meanwhile, areas outside NCR (AONCR) saw a slight slowdown in inflation, which eased to 1.1 percent from 1.2 percent in May. The deceleration was attributed to zero growth in food and non-alcoholic beverages, though higher rates were observed in other categories such as housing, education, and recreation. Regional differences were notable, with 10 regions posting lower inflation or faster annual declines in June, while the Ilocos Region registered the highest rate at 2.2 percent.
Overall, inflation in the Philippines remains well below year-ago levels, reflecting easing food prices and relatively stable core inflation. However, recent increases in housing and some service-related costs suggest that price pressures, though modest, continue to warrant close monitoring in the months ahead.
The slight uptick in June was mainly due to higher year-on-year increases in housing, water, electricity, gas, and other fuels, which grew 3.2 percent from 2.3 percent in the previous month. A slower decline in transport costs, which fell by 1.6 percent compared to a 2.4 percent drop in May, also added to the upward pressure. Other commodity groups, including clothing and footwear, furnishings and household maintenance, education services, and restaurant and accommodation services, posted higher annual growth rates as well.
On the other hand, food and non-alcoholic beverages saw a lower inflation rate at 0.4 percent, down from 0.9 percent in May, helping temper overall price growth. Personal care and miscellaneous goods and services also registered a slightly lower rate at 2.4 percent. Most other commodity groups maintained their previous growth rates.
Among all categories, housing, water, electricity, gas, and other fuels contributed nearly half of the overall inflation in June, followed by restaurants and accommodation services and food and non-alcoholic beverages.
Food inflation at the national level eased further to just 0.1 percent in June, from 0.7 percent a month earlier and far below the 6.5 percent recorded a year ago. The slowdown in food prices was led by declines in vegetables, rice, corn, and sugar, as well as more modest increases in ready-made food. However, higher annual rates were still observed in several food groups, including meat, fish, dairy products, oils, and fruits.
Core inflation, which excludes selected food and energy items, remained steady at 2.2 percent for the fourth month in a row. This is lower than the 3.1 percent registered in June 2024, indicating relatively stable underlying price pressures despite fluctuations in volatile items.
Across regions, inflation trends diverged. In the National Capital Region (NCR), inflation accelerated to 2.6 percent in June from 1.7 percent in May. This was driven largely by a sharp increase in housing and utilities as well as slower declines in transport costs. Modest increases were also noted in food, alcoholic beverages, health, education, and restaurant services.
Meanwhile, areas outside NCR (AONCR) saw a slight slowdown in inflation, which eased to 1.1 percent from 1.2 percent in May. The deceleration was attributed to zero growth in food and non-alcoholic beverages, though higher rates were observed in other categories such as housing, education, and recreation. Regional differences were notable, with 10 regions posting lower inflation or faster annual declines in June, while the Ilocos Region registered the highest rate at 2.2 percent.
Overall, inflation in the Philippines remains well below year-ago levels, reflecting easing food prices and relatively stable core inflation. However, recent increases in housing and some service-related costs suggest that price pressures, though modest, continue to warrant close monitoring in the months ahead.
Jul 4, 2025
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