Gov’t Actions Slash Food Inflation to 0.1% in June – DepDev
Government interventions to stabilize food supply, enhance agriculture, and improve logistics drove food inflation down to 0.1% in June 2025, from 0.7% in May and 6.5% in June 2024, according to the Department of Economy, Planning, and Development. The Philippine Statistics Authority reported Friday, July 4, that overall inflation rose slightly to 1.4% in June

By Staff Writer
Government interventions to stabilize food supply, enhance agriculture, and improve logistics drove food inflation down to 0.1% in June 2025, from 0.7% in May and 6.5% in June 2024, according to the Department of Economy, Planning, and Development.
The Philippine Statistics Authority reported Friday, July 4, that overall inflation rose slightly to 1.4% in June from 1.3% in May.
This brings the year-to-date average inflation to 1.8%, well within the government’s 2.0% to 4.0% target range.
Rice posted a steeper deflation of -14.3% in June, deeper than May’s -12.8%.
Inflation for the bottom 30% of households, or poorer segments, stood at -0.4%.
The slight uptick in headline inflation was driven by higher non-food inflation, which rose to 1.9% from 1.5%.
Significant increases were seen in electricity (7.4% from 2.8%) and education (5.4% from 4.2%).
Supply issues pushed up inflation for meat (9.1% from 7.9%) and fish (6.2% from 5.7%).
Meanwhile, the deflation in personal transport costs eased to -6.9% from -10.1%.
“The sharp decline in food inflation over the past year underscores our progress in boosting local production, improving logistics, and implementing calibrated trade and biosecurity measures,” said Economy Secretary Arsenio M. Balisacan.
“We will sustain these interventions and complement them with targeted initiatives to ensure stable supply and protect consumers from future price pressures,” he added.
To strengthen food supply chains, the Department of Agriculture will expand recovery and growth programs like the Swine Industry Recovery Project and Livestock Economic Enterprise Development.
These aim to rebuild the hog population to pre-African Swine Fever levels.
Under the Swine Industry Recovery Project, the agency will procure breeding stock for distribution to private farms, local governments, and cooperatives.
To support onion farmers, the department will establish the country’s first Onion Research and Extension Center in Bongabon, Nueva Ecija.
The center will focus on pest control, seed quality, and improving yields.
The Department of Energy has also partnered with private oil firms to offer fuel discounts amid global oil price volatility.
As of June 30, nine oil companies have committed to offering fuel discounts to drivers of public utility vehicles, non-PUVs, and transport network vehicles.
The agency is working to expand the number of participating gas stations nationwide.
“While easing food inflation is encouraging, we remain vigilant against domestic and external risks,” Balisacan said.
He cited global market volatility and climate-driven disruptions in fuel and power as ongoing threats to price stability.
He stressed the need for sustained interagency coordination and evidence-based policy to protect household purchasing power, especially for vulnerable sectors.
BSP OUTLOOK
The Bangko Sentral ng Pilipinas said June inflation was within its forecast range of 1.1% to 1.9%.
It expects inflation to remain below the 2.0% target in 2025, largely due to declining rice prices.
However, recent oil price spikes could partially offset these gains.
For 2026 and 2027, inflation is forecast to fall within the 2.0% to 4.0% target.
Weakened global economic activity—linked to U.S. trade uncertainty and Middle East conflict—may slow domestic growth.
In response, the BSP signaled a more accommodative monetary policy stance. It said emerging risks require close monitoring, including the impact of earlier policy moves.
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