FX.co ★ Philippines Inflation Rate Ticks Up

The annual inflation rate in the Philippines rose slightly to 1.4% in June 2025, up from a five-year low of 1.3% in May, although it fell just short of market forecasts of 1.5%. The increase was predominantly driven by higher costs in sectors such as housing and utilities, which climbed to 3.2% from May's 2.3%. Clothing and footwear costs also experienced a small rise to 1.7% from 1.6%, while furnishings, household equipment, and routine maintenance edged up slightly to 2.1% from 2.0%. Additionally, education expenses surged to 5.4% from 4.2%, and charges for restaurants and accommodation services rose to 2.1% from 2.0%. Meanwhile, the rate of deflation in transport costs lessened to -1.6% from -2.4%. Conversely, the pace of price increases slowed for food and non-alcoholic beverages, which grew by 0.4% down from 0.9%, as well as for personal care and miscellaneous goods and services, which saw a slight dip to 2.4% from 2.5%. On a month-to-month basis, consumer prices increased by 0.2% in June 2025, recovering from a 0.1% decline observed in May. Core inflation, which excludes volatile food and energy prices, held steady for the third month in a row at 2.2% in June 2025.