MANILA, Philippines — The Philippines’ headline inflation rose slightly to 1.4 percent in June 2025, up from 1.3 percent in May, according to the Philippine Statistics Authority (PSA). 

This brings the average inflation from January to June to 1.8 percent, significantly lower than the 3.7 percent posted in the same month last year.

In a press conference Friday, the uptick in June inflation was driven mainly by higher year-on-year increases in the housing, water, electricity, gas, and other fuels index, which accelerated to 3.2 percent from 2.3 percent in May. A slower decline in transport costs also contributed, with the transport index easing by 1.6 percent versus a 2.4 percent drop the month before.

Price increases were also recorded in several commodity groups:

• Education services: 5.4 percent from 4.2 percent
• Clothing and footwear: 1.7 percent from 1.6 percent
• Household furnishings and maintenance: 2.1 percent from 2 percent
• Restaurants and accommodation services: 2.1 percent from 2 percent

Meanwhile, food and non-alcoholic beverages slowed to 0.4 percent from 0.9 percent, contributing to the softening of overall price pressures. Personal care and miscellaneous goods also posted a slower inflation rate at 2.4 percent from 2.5 percent.

Top contributors to June 2025 inflation:

1. Housing, utilities, and fuels – 46.7 percent share (0.7 percent)
2. Restaurants and accommodation – 14.9 percent share (0.2 percent)
3. Food and non-alcoholic beverages – 10.8 percent share (0.2 percent)

Food inflation eases to 0.1%

Food inflation at the national level further slowed to 0.1 percent in June, from 0.7 percent in May and 6.5 percent in June 2024.

This deceleration was primarily driven by:

• A sharper annual drop in vegetables and tubers (-2.8 percent)
• A deeper decline in rice prices (-14.3 percent)
• Slower increases in ready-made food products (2.2 percent)

However, faster price increases were noted in:

• Meat: 9.1 percent from 7.9 percent
• Fish: 6.2 percent from 5.7 percent
• Fruits and nuts: 9.7 percent from 8.3 percent
• Oils and fats: 7.1 percent from 5.8 percent

The top food contributors were meat (1.4 percent), fish (0.8 percent), and fruits (0.3 percent).

Core inflation remains steady at 2.2%

Core inflation, which strips out volatile food and energy prices, held steady at 2.2 percent for the fourth straight month, down from 3.1 percent in June 2024.

NCR inflation climbs to 2.6%

In the National Capital Region, inflation rose to 2.6 percent in June from 1.7 percent in May. The spike was largely due to a jump in housing, water, electricity, gas and fuels, which surged to 6.0 percent from 3.1 percent.

Other sectors that posted faster price increases include:

• Food and non-alcoholic beverages: 2.3 percent
• Alcoholic beverages and tobacco: 2.5 percent
• Education services: 2.8 percent

Inflation in areas outside NCR slows to 1.1%

Outside the capital, inflation eased to 1.1 percent from 1.2 percent in May, with the slowdown attributed mainly to flat food and beverage prices.

Despite this, some regions still recorded faster inflation in specific sectors, such as education, housing, and transport.

Ten regions saw a decline or slower rise in prices, including:

• Northern Mindanao (Region X): 0.3 percent
• SOCCSKSARGEN (Region XII): 0.9 percent
• BARMM: 0.9 percent

The Ilocos Region recorded the highest inflation in June at 2.2 percent, it said.