QUICK LOOK: June 2025 inflation climbs to 1.4%

Headline inflation rose to 1.4 percent in June 2025, up slightly from 1.3 percent in May, driven mainly by a faster year-on-year increase in housing, water, electricity, gas, and other fuel costs.  In comparison, inflation in June 2024 stood at 3.7 percent.

This brought the average inflation rate for the first half of 2025 to 1.8 percent.

Core inflation—which excludes volatile food and energy items—remained steady at 2.2 percent for the fourth consecutive month. This is lower than the 3.1 percent recorded in June 2024.

Main drivers of inflation

  • The biggest contributor to the increase was the housing, water, electricity, gas, and other fuels category, with inflation accelerating to 3.2 percent from 2.3 percent.

  • The transport sector’s slower price decline (−1.6 percent vs. −2.4 percent in May) also pushed overall inflation upward.

  • Other groups that posted higher inflation rates:

    • Education services: 5.4 percent  (from 4.2 percent )

    • Clothing & footwear: 1.7 percent  (from 1.6 percent )

    • Furnishings & household maintenance: 2.1 percent  (from 2.0 percent )

    • Restaurants & accommodation: 2.1 percent  (from 2.0 percent )

 Food Inflation

  • Food inflation eased significantly to 0.1 percent  from 0.7 percent  in May, and sharply down from 6.5 percent  in June 2024.

  • Top contributors to food inflation:

    • Meat: 9.1 percent 

    • Fish & seafood: 6.2 percent 

    • Fruits & nuts: 9.7 percent 

  • Biggest downward drivers:

    • Vegetables & tubers: −2.8 percent 

    • Rice: −14.3 percent 

    • Corn: −14.5 percent 

Regional TrendsNational Capital Region (NCR):

  • Inflation in NCR jumped to 2.6 percent  in June from 1.7 percent  in May.

  • Key driver: Housing and utilities, which surged to 6.0 percent  from 3.1 percent.

  • Higher inflation was also noted in health, education, food, and restaurants.

Areas Outside NCR:

  • Inflation in AONCR eased slightly to 1.1 percent  in June from 1.2 percent  in May.

  • Food and non-alcoholic beverages inflation dropped to percent , pulling the overall rate down.

  • However, price increases were seen in alcohol, clothing, housing, furnishings, and education.

  • Region I (Ilocos Region) recorded the highest inflation among regions at 2.2 percent .

  • Notable declines were recorded in Northern Mindanao (0.3 percent )SOCCSKSARGEN (0.9 percent ), and BARMM (0.9 percent ).

—Ed: Corrie S. Narisma

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