Inflation eases to 0.9% in July

Inflation hit a fresh low of 0.9% in July, easing from 1.4% in June, as housing and utility costs rose more slowly, food prices dipped and transport expenses fell further.

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The Philippine Statistics Authority (PSA) reported on Tuesday, August 5, that the average inflation from January to July 2025 dropped to 1.7%. Last month's 0.9% inflation is also far lower than the 4.4% recorded in July 2024.

In other words, prices of goods and services are rising more slowly than in previous months. The downward trend in inflation began in January 2025, reversing the steady rise observed since September 2024.

The 0.9% inflation rate in July is also the lowest in six years, last seen in October 2019, when inflation hit 0.8%.

According to the PSA, the biggest driver of July’s slower inflation was the deceleration in housing, water, electricity, gas and other fuel prices, which eased to 2.1% — down from 3.2% in June. This accounted for almost half (45.1%) of the overall slowdown.