The Philippines’ headline inflation ticked up to 1.4% in June 2025 from 1.3% in the previous month, the Philippine Statistics Authority (PSA) said.

According to its consumer price index released on Friday, July 4, the uptrend in the overall inflation for June 2025 was primarily driven by the higher year-on-year increase in housing, water, electricity, gas, and other fuels at 3.2%. The slower annual decrease of transport at 1.6% in June 2025 also contributed to the uptrend, the PSA noted.

Higher inflation rates were observed in the following commodity groups:

• Clothing and footwear (1.7% from 1.6%);
• Furnishings, household equipment, and routine household maintenance (2.1% from 2.0%);
• Education services (5.4% from 4.2%); and
• Restaurants and accommodation services (2.1% from 2.0%)

Lower inflation rates were noted in food and non-alcoholic beverages at 0.4% in June 2025. This also included personal care and miscellaneous goods and services at 2.4%, compared to the inflation rates of 0.9% and 2.5% in the previous month, respectively.

“Ang nakikita natin doon sa mga areas na nagkaroon ng wage increases. Una, may lag effect tayo, so hindi kaagad ‘yon nagkakaroon ng impact. Pero may mga naunang commodity items na nagkakaroon ng pagtaas [ng input],” he explained.

According to Mapa, the commodity items with high input usually include personal care and miscellaneous goods and services.

“Usually yung items na mataas yung input, dahil of course, wages ‘yon. Isa don yung personal care, yung miscellaneous goods and services, ‘yun ang nakikita namin na may pagtaas ng presyo. Hindi naman automatic pero may lag siya,” he said.

Meanwhile, the top three commodity groups that contributed to the June 2025 overall inflation rate were the following:

• Housing, water, gas and other fuels (46.7%)
• Restaurants and accommodation services (14.9%)
• Food and non-alcoholic beverages (10.8%)