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Economy
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Inflation Update: Quicker on power rates but still slow
Annual consumer-price increases quickened to 1.4% in June, that’s still below the government’s revised target.
July 4, 2025
By Metrobank Research
By Metrobank Research
Consumer prices in the Philippines rose 1.4% year-on-year (YoY) in June, slightly faster than the 1.3% in the previous month.
Still subdued inflation allows monetary authorities to sustain interest-rate cuts, providing another springboard to growth amid global economic uncertainty.
Key points
- For the first half of the year, headline inflation averaged 1.8% YoY. That’s still below the government’s revised 2%-3% target for the year.
- The still slow inflation is due to soft demand amid a bleak global economic outlook.
- Core inflation, which strips out volatile food and energy costs, was steady at 2.2% YoY.
Moving forward
- Metrobank estimates inflation to average at 2.0% this year.
- We forecast another cumulative 50 basis points (bps) worth of policy rate cuts from the BSP this year.
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Inflation Update: Weak demand softens shocks
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