Arthur Fuentes

A vendor tends to his store selling rice and other goods in San Juan City on February 26, 2025. The city is looking at selling 5 kilo bags of rice priced at P33 per kilo to residents as an alternative to buying a whole sack that has about 50 kilos priced at P1650

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<h2 id="isPasted">P20 per kilo rice seen making impact</h2>MANILA (UPDATE) — Inflation slowed in July to 0.9 percent, which is the slowest so far this year, the Philippine Statistics Authority said on Tuesday.This was slower than the 1.4 percent seen in June, and was below even the 2 to 4 percent target of economic managers. The July clip was within the 0.5 to 1.3 percent forecast range of the Bangko Sentral ng Pilipinas.This brought the average inflation from January to July to 1.7 percent, PSA Undersecretary and National Statistician Dennis Mapa said.The PSA said the lower rate in July was due to slower increases in the costs of housing, water, electricity, gas and other fuels index which slipped to 2.1 percent from 3.2 percent in June. The PSA also observed a faster annual decline in transport costs, which fell 2 percent in July, after already falling 1.6 percent in June.Falling prices of food, particularly of rice, which was cheaper by 15.9 percent in July this year compared to July last year, also helped pull down the inflation rate in July.&quot;So, patuloy pa rin ang pagbaba ng presyo ng ating bigas. Ang malaking pagbaba ay Nakita natin dunsa regular milled rice,&quot; Mapa said.He noted that the price of regular milled rice in July averaged P41.31 compared to P50.90 in July last year, or a year-on-year reduction of 18.2 percent. On a month-on-month basis, rice prices are still going down. The price of regular milled rice in June was P42.35.Rice prices have fallen in recent months amid the reduction of tariffs on imported rice. Mapa said the P20 per kilo rice program of the government also appeared to be having an impact on overall rice prices.&quot;And then nakikita ng ating mga data collectors na yung presyo, even doon sa mga outlets kung saan wala tayong binibenta na P20 per kilo rice, yung presyo ng kanilang regular meal rice ay bumababa na rin. So siguro dahil may competition, may pupuntahan na P20, nag-adjust na rin sila sa kanilang presyo pababa,&quot; Mapa added.The PSA chief said they expect rice inflation to remain low this year, although they will be monitoring the possible impact of plans to raise the tariffs on imported rice.Despite the negative inflation rate for the index of food and non-alcoholic beverages, the PSA acknowledged that prices remain high for other food items like pork, chicken and fish.Mapa noted that the average price of kasim or pork shoulder was P371 per kilo in July this year, while it was just P335 last year. High prices of pork were largely due to the effects of the African swine fever, he said. In turn, high pork prices are pushing consumers to alternatives like chicken, which in turn, is also raising its prices.Meanwhile, core inflation, which strips out selected food and energy items that are prone to big swings, increased to 2.3 percent in July from 2.2 percent in June, the PSA said.  For the poorest Filipinos, who make up the bottom 30 percent of the population, inflation was even more significant at -0.8 percent. This brought the average inflation from Jan-July for poor Filipinos to 0.5 percent.The Department of Economy, Planning and Development (DEPDev) said this marks a sharp reversal from the 5.8 percent inflation rate experienced by this group in the same month last year. DEPDev Secretary Arsenio M. Balisacan welcomed the continued moderation in inflation.“The sustained drop in rice prices and the easing of inflation for low-income households are clear signs that our interventions are working. This not only helps Filipinos preserve the value of their peso but also builds confidence for businesses and consumers to plan ahead,” Balisacan said.“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,” he added.  Analysts have said that the benign inflation this year gives the BSP more room to cut interest rates to help spur economic development. The BSP&#x27;s next rate-setting meeting is on August 28. The central bank has so far cut rates by 50 basis points this year.<div> </div><div>RELATED VIDEO:</div><script data-wid="auto" type="text/javascript" src="https://content.viralize.tv/display/?zid=AAFz8gWM8iRADsJr&amp;cid=ABduE1dKnj1z3_UE"></script>

Inflation slowed in July to 0.9 percent, the Philippine Statistics Authority said on Tuesday.

Inflation slowed in July to 0.9 percent, the Philippine Statistics Authority said on Tuesday.

Inflation slows to less than 1 percent in July

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Inflation slows to less than 1 percent in July

Arthur Fuentes,

ABS-CBN News

Published August 05, 2025 09:09 AM PHT

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Updated August 05, 2025 06:55 PM PHT

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