MANILA, Aug. 5 (Xinhua) -- The Philippines' annual inflation rate eased to 0.9 percent in July 2025, down from 1.4 percent in June, marking the lowest level since October 2019, when inflation stood at 0.6 percent, the Philippine Statistics Authority (PSA) said on Tuesday.
PSA Chief Dennis Mapa said at a press briefing that the decline in overall inflation in July was mainly driven by a slower annual increase in the index for housing, water, electricity, gas, and other fuels, which rose by 2.1 percent, down from 3.2 percent in June.
Additionally, the transport index saw a faster annual decrease, dropping by 2.0 percent in July compared to a 1.6 percent decline in the previous month.
The July figure brings the average inflation rate from January to July 2025 to 1.7 percent, significantly lower than the 4.4 percent recorded in July 2024.
Meanwhile, core inflation, which excludes selected food and energy items, rose to 2.3 percent in July 2025. In comparison, core inflation stood at 2.9 percent in July 2024.
"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," said Department of Economy, Planning, and Development Secretary Arsenio Balisacan.
Despite recent weather disturbances, he said that the state weather bureau forecasts a relatively favorable climate outlook.
"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," Balisacan said. ■
