Philippines sees slight rise in inflation in June due to higher utility costs

The Philippines recorded a minor uptick in its inflation rate in June 2025, marking the end of a four-month streak of declines, according to data released by the Philippine Statistics Authority (PSA).

At a press briefing on Friday, National Statistician Claire Dennis Mapa announced that inflation in June rose to 1.4% from 1.3% in May, mainly driven by a sharper rise in utility prices.

“Ang pangunahing dahilan ng mas mataas na antas ng inflation nitong Hunyo 2025… ay ang mas mabilis na pagtaas ng presyo ng Housing, Water, Electricity, Gas and Other Fuels sa antas na 3.2%,” Mapa stated in a GMA News Online report, adding that this group accounted for 63.3% of the overall increase.

The surge in electricity costs, which jumped to 7.4% from 2.8% the previous month, played a major role. Additionally, transport inflation declined at a slower pace—contracting by -1.6% from -2.4%—and education-related expenses rose ahead of the new school year, climbing to 5.4% from 4.2%.

Despite the headline increase, food inflation offered some relief, slowing to 0.1% from 0.7% in May, driven largely by a deeper deflation in rice prices, which fell to -14.3%. Other items like corn, vegetables, and sugar also saw more favorable price movements.

However, not all food groups followed suit. Meat, fish, fruits, dairy products, and bakery items saw price increases compared to the previous month.

Economic Planning Secretary Arsenio Balisacan welcomed the continued drop in food inflation. “The sharp decline in food inflation over the past year underscores the continued progress in our coordinated efforts to boost local production, improve logistics, and implement calibrated trade and biosecurity measures,” he said.

To further improve food security, the government is ramping up initiatives such as the Swine Industry Recovery Project and the Livestock Economic Enterprise Development program, both aimed at rebuilding the hog population decimated by African Swine Fever. Meanwhile, a new Onion Research and Extension Center is being built in Nueva Ecija to strengthen the country’s onion industry.

On the energy front, the Department of Energy has secured commitments from nine oil firms to provide fuel discounts to motorists, especially those operating public transport vehicles, amid global oil price volatility.

Balisacan stressed that while the dip in food prices is encouraging, risks remain. “We will maintain our vigilance against possible external and domestic risks… to safeguard the purchasing power of Filipino households,” he said.