Headline inflation slowed further to 0.9 percent in July from 1.4 percent in June, the Philippine Statistics Authority (PSA) reported on Tuesday.
The comparative July 2024 inflation rate was significantly higher at 4.4 percent.
National Statistician Claire Dennis Mapa said the continued downtrend was mainly driven by the slower annual increase in the index for housing, water, electricity, gas, and other fuels, which eased to 2.1 percent from 3.2 percent in June.
He also cited the annual decrease in the index for food and non-alcoholic beverages, which posted a -0.2 percent rate in July, compared with a 0.4 percent increase a year earlier, as another major contributor to easing inflation.
Other commodity groups that posted slower inflation rates during the month were education services, down to 4.3 percent from 5.3 percent, and personal care and miscellaneous goods and services, down to 2.3 percent from 2.4 percent.
Main contributors
The top three contributors to the July 2025 headline inflation rate were:
• Housing, water, electricity, gas and other fuels, with a 47.3 percent share or 0.4 percentage point
• Restaurants and accommodation services, with 24.7 percent share or 0.2 percentage point
• Alcoholic beverages and tobacco, with 14.2 percent share or 0.1 percentage point
Food inflation
Food inflation at the national level registered an annual decline of 0.5 percent in July 2025, a reversal from the 0.1 percent increase in June. It was also markedly lower compared to 6.7 percent in July 2024.
The faster year-on-year decline in rice prices — down by 15.9 percent in July from 14.3 percent in June — was the primary driver of the downward trend in food inflation.
A similar trend was observed in vegetables, tubers, plantains, cooking bananas and pulses, which declined by 4.7 percent from 2.8 percent the previous month. Corn prices also declined more sharply, posting a 15.9 percent drop from 14.5 percent in June.
Slower annual increases were also seen in:
• Fruits and nuts, 8.0 percent from 9.7 percent
• Meat and other parts of slaughtered land animals, 8.8 percent from 9.1 percent
• Milk, other dairy products and eggs, 5.0 percent from 5.1 percent
• Ready-made food and other food products not elsewhere classified, 2.0 percent from 2.2 percent
In contrast, higher annual growth rates were recorded in:
• Flour, bread and other bakery products, pasta products and other cereals, 1.5 percent from 1.3 percent
• Fish and other seafood, 6.3 percent from 6.2 percent
• Oils and fats, 7.8 percent from 7.1 percent
Meanwhile, sugar, confectionery and desserts posted a slower annual decline of 0.5 percent in July from 0.7 percent the previous month.
Core inflation
Core inflation, which excludes selected food and energy items, edged up to 2.3 percent in July from 2.2 percent in June. It was still lower than the 2.9 percent recorded in July 2024.
