The Philippines’ overall or headline inflation eased to 0.9% in July 2025, from 1.4% in June 2025.
Based on the data from the Philippine Statistics Authority’s (PSA) inflation report and consumer price index, the downtrend in overall inflation for July 2025 was primarily driven by the slower annual increase in the following categories: housing, water, electricity, gas, and other fuels. This had a percentage of 2.1 in July from 3.2% in June 2025.
The annual decrease in the index of food and non-alcoholic beverages (0.2%) also contributed to the downward trend of inflation for the said month. Moreover, a faster annual decline was recorded in the transport category at 2.0% in July 2025, from the 1.6% annual drop in June 2025.
In contrast, lower rates were recorded for the following categories:
- Education services (4.3% from 5.3%)
- Personal care, and miscellaneous goods and services (2.3% from 2.4%)
Meanwhile, higher annual growth rates for July 2025 were observed in the following commodity groups:
- Alcoholic beverages and tobacco (4.2% from 3.8%)
- Clothing and footwear (1.8% from 1.7%)
- Health (2.6% from 2.4%)
- Information and communication (0.5% from 0.4%)
- Restaurants and accommodation services (2.3% from 2.1%)
The PSA also listed the top three commodity groups that contributed to the previous month’s overall inflation rate:
- Housing, water, electricity, gas, and other fuels (47.3% share or 0.4% point)
- Restaurants and accommodation services (24.7% share or 0.2% point)
- Alcoholic beverages and tobacco (14.2% share or 0.1% point)
Food Inflation
The faster annual decline of rice at 15.9% in July 2025 from 14.3% in June 2025 caused the year-on-year decrease in the food index for the previous month, the PSA noted.
The top three food groups in terms of contribution to food inflation for July 2025 were observed in the following:
- Cereals and cereal products, which include rice, corn, flour, bread and other bakery products, pasta products, and other cereals (-3.5% points share)
- Vegetables, tubes, plantains, cooking bananas, and pulses (-0.4% point share)
- Sugar, confectionery, and desserts (-0.1% point share)
