FX.co ★ Philippines Inflation Rate Lowest Since 2019

In July 2025, the annual inflation rate in the Philippines decreased to 0.9%, which was lower than the anticipated 1.1% and the 1.4% recorded in the previous month. This was the lowest rate observed since October 2019. The decline was driven by reduced prices in categories such as food and non-alcoholic beverages, which fell to -0.2% from 0.4% in June, and transportation, which decreased to -2% from -1.6%. Moreover, the pace of price increases slowed for housing and utilities (reducing to 2.1% from 3.2%), education (4.3% from 5.3%), as well as personal care, miscellaneous goods, and services (narrowing to 2.3% from 2.4%). Conversely, inflation saw an uptick in the sectors of alcoholic beverages and tobacco (rising to 4.2% from 3.8%) and health (increasing to 2.6% from 2.4%). Monthly, consumer prices increased by 0.3%, a slight rise from the 0.2% seen in June. At the same time, core inflation, which excludes volatile food and energy prices, rose to 2.3%—the highest rate in five months—up from its consistent 2.2% over the previous four months.