Key Facts
• June CPI rose 1.4% year-on-year, up from May’s 1.3%.
• Public utility costs increased, driving the slight acceleration.
• Inflation remains below the central bank’s 2.0–4.0% target range.
• Market forecast for June CPI was 1.5%; January–June average was 1.8%.
• Housing, utilities, and fuel costs rose 3.2%, up from May’s 2.3%.
• Rice prices dropped 14.3%, the largest decline on record, curbing food inflation.
• Core inflation, excluding food and energy, remained steady at 2.2%.
• Central bank expects inflation to stay below the target range due to falling rice prices.
• Central bank governor hinted at two potential rate cuts in 2025 due to low inflation.
Summary
The Philippines’ consumer price index (CPI) rose 1.4% year-on-year in June, slightly higher than May’s 1.3%, driven by increased public utility costs. Despite this, inflation remains below the central bank’s 2.0–4.0% target range, providing room for potential rate cuts. Housing, utilities, and fuel costs saw a 3.2% rise, while rice prices recorded a historic 14.3% drop, helping to moderate food inflation. Core inflation held steady at 2.2%. The central bank anticipates inflation will stay below the target range due to continued declines in rice prices. Governor Remolona suggested the possibility of two rate cuts in 2025, citing low inflation levels.
