Rice, vegetable prices pull July inflation below 1%

A continued decline in rice and vegetable prices pulled the Philippines’ inflation rate to a six-year low in July 2025, providing relief to households across the country—especially the poorest families, who experienced outright deflation.

The Philippine Statistics Authority (PSA) reported Tuesday that headline inflation dropped to 0.9% in July, down from 1.4% in June and marking the lowest level since October 2019, when it stood at 0.6%.

Year-to-date inflation averaged just 1.7%, well below the government’s 2.0%–4.0% target for 2025.

Low-income households, which make up the bottom 30% income group, recorded a year-on-year deflation rate of -0.8% in July—reversing from 5.8% in the same month last year. It was their lowest inflation level in nearly six years.

The Department of Economy, Planning, and Development (DEPDev) attributed this sharp decline to food price deflation, particularly in rice, corn, and vegetables.

“Statistical improvements are meaningful only when they translate into better lives for ordinary Filipinos,” said DEPDev Secretary Arsenio M. Balisacan. “Thus, we are committed to sustaining this positive momentum and ensuring that protecting the purchasing power of Filipinos remains our top priority as we move to the second half of this administration.”

Prices of rice for all households fell by 15.9% in July, from a 14.3% drop in June. The rice price index continued its 13-month downward trend, reaching 99.4 in July 2025, nearly matching its pre-crisis level of 97.7 in July 2023.

Vegetable prices also recorded deeper deflation, down 4.7% from 2.8% in June. Corn prices dropped by 17.7%, accelerating from a 16.0% decline the previous month.

The food and non-alcoholic beverages index, which heavily affects the inflation experienced by low-income households, declined 3.0% year-on-year in July.

“Lagi ngang paalala ng ating Pangulo, anong silbi ng magagandang numero kung marami pa rin ang nagugutom?” said Finance Secretary Ralph G. Recto. “Kaya hindi lang po namin pinapababa ang inflation sa papel. Patuloy po kaming nagtatrabaho para siguraduhing mararamdaman ng bawat pamilyang Pilipino ang pagbaba ng presyo ng bigas, pagkain, kuryente, at iba pang pang-araw-araw na pangangailangan.”

Non-food inflation was also subdued, aided by lower electricity costs and stable oil prices. Electricity inflation slowed to 1.3% from 7.4% in June, while transport operation costs fell by 7.3%.

The government attributed the moderation in prices to a range of targeted interventions, including the President’s “Benteng Bigas, Meron Na!” (BBM Na!) and Kadiwa ng Pangulo (KNP) programs, as well as Executive Order No. 62, which lowered tariff rates on key food items starting in July.

Under the Kadiwa initiative, low-income beneficiaries of the Walang Gutom Program (WGP) can buy rice at PHP20 per kilo.

To further stabilize supply and support agriculture, the Department of Agriculture (DA) has distributed PHP495.4 million worth of inputs, such as rice, corn, and vegetable seeds, especially to areas affected by recent typhoons Crising, Dante, and Emong, and the southwest monsoon.

The DA also ramped up recovery aid, including the activation of the Quick Response Fund and zero-interest loans of up to PHP25,000 under the Survival and Recovery (SURE) Loan Program. Over PHP478 million in crop insurance payouts have already been released to 61,223 affected farmers.

Meanwhile, efforts to contain African Swine Fever (ASF) continue. The DA expects 150,000 more doses of AVAC live vaccines from Vietnam this month, building on earlier nationwide distributions. Border controls have reduced ASF-affected barangays to just 28 as of July 11, down from a peak of 534 in October 2024.

Despite recent weather disturbances, the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) expects a generally favorable climate, forecasting nine to 17 tropical cyclones between August 2025 and January 2026 under ENSO-neutral conditions.

Authorities continue to guard against inflationary risks, including geopolitical tensions and climate-related disruptions.

“While we expect the overall inflation for 2025 to remain favorable and supportive of domestic demand, we remain vigilant against external risks, including global policy shifts and geopolitical tensions,” Balisacan said.

Efforts to ensure long-term food and energy security are also underway. The Department of Energy (DOE) is implementing a PHP1.00–PHP2.00 per liter fuel discount program for public utility vehicles and is coordinating with private energy firms to build nearly 200 new power plants over the next three years.

These new power plants, when completed, are expected to provide electricity to 4 million additional households, with implementation overseen by the DOE, the Energy Regulatory Commission, and the National Grid Corporation of the Philippines.

The Department of Trade and Industry (DTI) has also intensified price monitoring in areas under a state of calamity, enforcing a 60-day price freeze on essential items as mandated under Republic Act No. 7581.