The country’s poorest households experienced deflation in July, as lower rice and vegetable prices pushed the inflation rate for the bottom 30 percent income group down to -0.8 percent, government data showed Tuesday.
The Department of Economy, Planning, and Development (DEPDev) said this marked a reversal from the 5.8 inflation recorded in the same month last year, reflecting a drop in essential food costs.
Nationwide, headline inflation eased to 0.9 percent in July from 1.4 percent in June, the Philippine Statistics Authority (PSA) reported on Tuesday.
Rice, vegetable prices and lower energy costs dragged inflation to 0.9 percent last month, the Philippine Statistics Authority reported on Tuesday.
The Department of Economy, Planning, and Development (DEPDev) said the figure marks a reversal from 5.8 percent in the same month last year, driven mainly by lower food prices.
The July print brings year-to-date inflation to 1.7 percent, signaling broader price stability across key commodity groups.
A continued decline in rice and vegetable prices pulled the national inflation rate down to 0.9 percent in July, its lowest since October 2019, the Philippine Statistics Authority (PSA) reported Tuesday.
For low-income households, inflation fell even deeper into negative territory — down to -0.8 percent — from 5.8 percent in the same month last year, the DEPDev said Tuesday.
The drop in inflation for the bottom 30 percent income group was mainly driven by further deflation in the food and non-alcoholic beverages index, which posted -3.0 percent in July from -2.2 percent in June.
Key contributors included rice (-17.8 percent), corn (-17.7 percent) and vegetables and tubers (-1.9 percent).
For all households, rice prices continued to fall — down 15.9 percent year-on-year — marking the 13th straight month of decline. The rice price index dropped to 99.4 in July, edging closer to its pre-surge level of 97.7 percent in July 2023.
Vegetable prices also fell further (-4.7 percent), while inflation for meat (8.8 percent from 9.1 percent) and other food staples eased.
Non-food inflation also moderated. Transport costs declined further amid muted global oil prices, with the personal transport index dropping 7.3 percent. Electricity inflation slowed sharply to 1.3 percent from 7.4 percent, helped by lower generation charges and deferred billing.
DEPDev Secretary Arsenio Balisacan said the data reflected the effectiveness of government interventions.
“The sustained drop in rice prices and the easing of inflation for low-income households are clear signs our measures are working,” he said. “This helps protect the peso’s value for ordinary Filipinos and boosts confidence among businesses and consumers.”
He added that inflation is expected to remain favorable for the rest of the year, though risks remain from global policy shifts and geopolitical tensions.
Despite recent storms, the climate outlook remains stable, with weather bureau Pagasa forecasting nine to 17 tropical cyclones from August to January.
ENSO-neutral conditions are expected to support agricultural production. ENSO is the El Niño-Southern Oscillation, a recurring climate pattern involving fluctuating ocean temperatures in the central and eastern equatorial Pacific, coupled with changes in the overlying atmosphere.
The Department of Agriculture has allocated P495.4 million in inputs — including rice, corn, and vegetable seeds — to aid storm-affected areas. It also stands ready to activate its Quick Response Fund and offer interest-free SURE loans of up to P25,000 with a three-year term.
The Philippine Crop Insurance Corporation is expediting indemnity payouts to affected farmers and fisherfolk.
Meanwhile, the DA expects the arrival of 150,000 additional ASF live vaccine doses from Vietnam this month. Strengthened border controls have already reduced ASF-affected barangays to 28 as of July 11, from a peak of 534 in October 2024.
Targeted families under the DSWD’s Walang Gutom Program (No Hunger Program) may also continue purchasing rice at P20 per kilo through the Kadiwa ng Pangulo outlets.
“Statistical gains must translate into real improvements in people’s lives,” Balisacan said. “Our top priority is to protect purchasing power and sustain this momentum through the second half of the administration.”
