Measures intact amid slightly high inflation — SAPIEA chief

Special Assistant to the President for Investments and Economic Affairs (SAPIEA), Frederick Go maintains that the Marcos Administration is prioritizing measures to sustain the low inflation environment.

On Friday, the Philippine Statistics Authority (PSA) reported that this June’s headline inflation, or overall inflation, increased to 1.4 percent, slightly climbing from 1.3 percent in the previous month.

This brings the average inflation rate from January to June 2025 to 1.8 percent. In June 2024, the inflation rate was higher at 3.7 percent.

“This development reflects the government’s continued efforts to keep costs stable, especially for our most vulnerable sectors,” said Go told reporters in a Viber message.

“In fact,” he added, “this June, we recorded a drop of 0.4 percent in prices for the bottom 30 percent of households.”

Uptrend in overall June inflation

The PSA further reported that the uptrend in the overall inflation in June 2025 was primarily brought about by the higher year-on-year increase in the index of housing, water, electricity, gas and other fuels at 3.2 percent during the month from 2.3 percent in May 2025.

The slower annual decrease of transport at 1.6 percent in June 2025 from an annual decline of 2.4 percent in the previous month also contributed to the uptrend, the PSA said.

“Pangunahing layunin ng pamahalaan na panatilihing matatag at abot-kaya ang presyo ng bilihin para sa bawat pamilyang Pilipino (The government’s priority aim is to make the prices of goods affordable to the Filipino people). We have tools at our disposal to manage risks and cushion against external shocks,” Secretary Go maintained.

Pork and chicken prices

But pork and chicken prices remain high in some wet markets, particularly Pritil Market in Tondo, Manila, where the price of kasim (pork loin) starts at P440 versus the suggested retail price (SRP) of P380, while liempo (pork belly) is now at P450 per kilo.

Meanwhile, whole dressed chicken, whose SRP is P240 per kilo, is now ranging from P300 to P320.

Meanwhile, Rizal Commercial Banking Corporation chief economist Michael Ricafort said the latest inflation rate is still among the best in more than five and a half years or since November 2019 when it was at 1.2 percent; slightly higher against 1.3 percent a month ago (May 2025), but still lower or better versus 3.7 percent last June 2024.

“It is interesting to note that average inflation since 2016 or since the Interest Rate Corridor (IRC) started in 2016 or at 3.6 percent. The latest inflation rate at 1.3 percent in May 2025 is considered benign and below the BSP’s inflation target of 2 to 4 percent for the 3rd straight month; this could support/justify future policy rate cuts, as early as the next BSP rate-setting meeting on 19 June 2025 and would also match future Fed rate cuts in the coming months,” Ricafort said.