FX.co ★ Philippines Producer Deflation Slows in July

In July 2025, producer prices in the Philippines experienced a year-over-year decrease of 0.27%, a slight improvement from a revised 0.35% dip recorded in the previous month. This represents the third consecutive month of declines in producer prices, albeit at a reduced rate. The primary factor for this moderated downturn was a less pronounced decrease in costs related to the manufacture of computer, electronic, and optical products, which saw a reduction of 1%, compared to a 2.5% decrease in June. This sector alone accounted for 84.1% of the slower overall decline. Other sectors contributing to this softer decline included food products, with prices increasing by 0.5% compared to 0.4% previously, and furniture, which rose by 1.4% against the prior 0.7% increase. Conversely, price deflation intensified for basic metals, which fell by 1.5% compared to 0.6% earlier, electrical equipment, dropping by 4.1% versus 3.7%, and paper and paper products, declining by 0.8% compared to 0.7%. On a monthly basis, producer prices increased by 0.1% in July, following a 0.07% rise in the previous period.