PH Inflation Drops to 1.4%, Lowest Since 2019

The Philippines’ inflation rate dropped to 1.4% in April 2025, its lowest level since November 2019, providing much-needed relief to consumers and opening the door for possible interest rate cuts.

The deceleration brought the year-to-date average inflation to 2.0%, firmly within the government’s target range of 2.0% to 4.0%, according to the Philippine Statistics Authority.

Finance Secretary Ralph G. Recto said the administration remains focused on ensuring that Filipinos—especially low-income households—feel the benefits of easing prices.

“Kahit pa patuloy na bumababa ang inflation, hindi po kami magiging kampante,” Recto said.

“Patuloy po ang aksyon ng gobyerno — hindi lang para manatili itong mababa, kundi para siguraduhin na mararamdaman ito ng bawat pamilyang Pilipino,” he added.

Recto emphasized the government’s goal of sustaining price stability, particularly for essential goods like food, amid external uncertainties and domestic supply issues.

“This lower-than-expected inflation rate for the month also provides more room for the BSP to further cut policy interest rates to help us further boost the spending power of Filipinos, drive in more investments, and grow the economy,” he said.

The primary driver of the slowdown was food and non-alcoholic beverage inflation, which eased to 0.9% in April from 2.2% in March, reflecting improved supply and targeted price interventions.

Food inflation alone fell to 0.7% in April from 2.3% the month before and a high of 6.3% in April 2024, primarily due to a steep drop in rice prices.

Rice inflation contracted by 10.9% in April 2025, a sharp reversal from 23.9% a year earlier and -7.7% in March 2025, aided by price caps and increased imports.

As a result, inflation for the bottom 30% of income households slowed dramatically to just 0.1%—its lowest since late 2019—offering relief to the most vulnerable.

Outside Metro Manila, all regions experienced a decline in inflation, with Cordillera Administrative Region (CAR) and Cagayan Valley each recording 2.0%.

Recto acknowledged that price pressures remain in areas such as meat, electricity, restaurant services, and housing rentals, and said the government is actively targeting these sectors.

“We have been closely monitoring the situation and are aware of the upward price pressures… bringing down the prices for these items will be our primary focus moving forward,” Recto said.

To control food-related inflation, the government continues its whole-of-government approach, which includes enforcing pork price ceilings amid African swine fever (ASF) issues.

Other measures include increased fish import quotas, rollout of ASF vaccines, and a pilot pork distribution program through Food Terminal Inc. to reduce logistics costs and retail prices.

The Department of Agriculture also maintains a maximum retail price of PHP45 per kilogram for imported rice in the National Capital Region.

Additionally, the government plans to resume the PHP20 per kilogram rice subsidy program after the temporary pause due to the election-related aid distribution ban.

To curb second-round effects, the Toll Regulatory Board approved a three-month toll exemption for trucks carrying agricultural goods on North Luzon Expressway starting April 7.

Meanwhile, to alleviate the impact of high electricity costs, the government is enforcing price caps, implementing phased recovery schemes, and pursuing regulatory reforms for system affordability and reliability.

Efforts are also underway to promote renewable energy and cost-efficient power sources as part of long-term strategies to mitigate energy-driven inflation.

The Bangko Sentral ng Pilipinas (BSP) is expected to weigh these developments in its upcoming monetary policy meeting, with analysts forecasting room for rate cuts to stimulate consumption and investment.