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14.3% drop in rice prices cushions June inflation

July 05 2025

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Manila Bulletin

While consumer price increases rose slightly in June to 1.4 percent from May's five-and-a-halfyear low of 1.3 percent, a substantial drop in rice prices to their lowest in three decades since 1995 helped temper the overall inflation, according to the Philippine Statistics Authority (PSA).

- DERCO ROSAL

PSA data showed that rice prices deflated faster in June, falling by 14.3 percent compared to a 12.8 percent drop in May.

"When we collect prices of goods from our sample outlets, we follow certain criteria in choosing where we get these data. But I was informed that even among our sample outlets, some are now selling rice at P20 per kilo. There are a few such outlets. That's why the average price-particularly for regular-milled rice-continues to go down," National Statistician and PSA Undersecretary Claire Dennis Mapa explained at a press briefing on Friday, July 4.

The Marcos administration recently launched its cheaper P20 rice program through Kadiwa Centers, in partnership with local government units (LGUs), specifically targeting vulnerable sectors. Reports indicated this program has expanded from Metro Manila to other regions. The government initially allotted P4.5 billion for the P20 rice subsidy, covering the purchase and distribution of rice through Kadiwa Centers and LGU outlets.

Regional inflation, poorest households

Inflation in the National Capital Region (NCR) remains higher, clocking in at 2.6 percent in June, from 1.7 percent a month ago. This was primarily driven by higher annual increases in housing, water, electricity, gas, and other fuel costs, which grew by six percent in June from 3.1 percent the previous month.

Inflation in areas outside Metro Manila, however, slowed to 1.1 percent from 1.2 percent due to zero percent hike in the prices of food and non-alcoholic beverages in June, compared to a modest 0.6 percent increase in May.

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