Finance Secretary Ralph Recto said the recorded deflation for the bottom 30 percent income households at 0.4 percent in June 2025 reflects the government’s sustained efforts to ease the burden on the most vulnerable and lift more Filipinos out of poverty.
“This is good news for everyone. It means that government measures to keep the prices of goods low and affordable are effective, especially for those who need it most," Recto said in a statement.
"It is also no secret to us that many of our countrymen are still hungry, according to the SWS survey. That is why we will intensify our efforts to lift every Filipino family out of poverty,” he added.
Headline inflation at 1.4 percent in June which is well within the government's 2 to 4 percent target.
Food inflation—a key driver of household spending—significantly slowed to 0.1 percent mainly due to the year-on-year decreases in the prices of vegetables, rice, corn, and sugar; as well as a slower increase in the prices of ready-made food and other food products.
Despite easing inflation, Recto said the government remains watchful of potential price pressures, especially from higher electricity rates, pork prices due to the African swine fever (ASF), housing rentals, and inflation in restaurants, cafés, and poultry meat.
The government is continuously implementing the reduced rice tariff and lowering the maximum suggested retail price (MSRP) on imported rice to P43 per kg. beginning July 16 to ensure that Filipinos continue to enjoy affordable rice.
Through the Department of Agriculture’s “Benteng Bigas, Meron Na!” program, Recto said affordable rice is reaching low-income families and overseas Filipino workers while boosting demand for locally-produced rice and dairy.
The government is also rolling out the P29 per kg. rice through a nationwide partnership between the National Irrigation Administration and local government units, which is sourced directly from local farmer cooperatives to guarantee fair prices for both producers and consumers.
To further protect the interests of local farmers, the National Food Authority is tightening procurement rules for palay (unhusked rice) to ensure greater transparency and accountability.
In case of a fuel price hike due to geopolitical tensions, Recto said the government is ready to roll out fuel subsidy programs for various sectors to ease the burden of those most affected.
PNA PHOTO
