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June inflation hits 1.4% in Philippines, clothing prices up

09 Jul '25
2 min read
June inflation hits 1.4% in Philippines, clothing prices up
Pic: Shutterstock

Insights

  • Philippines' headline inflation rose to 1.4 per cent YoY in June 2025 from 1.3 per cent in May.
  • Six-month average stood at 1.8 per cent, below the 2–4 per cent target.
  • Non-food inflation rose, including a 1.7 per cent rise in clothing and footwear.
  • MoM inflation was flat at 0.2 per cent, with core inflation steady at 2.2 per cent.
  • BSP expects inflation to dip below target in 2025.

Headline inflation in the Philippines edged up slightly to 1.4 per cent year-on-year (YoY) in June 2025 from 1.3 per cent in May, remaining within the Bangko Sentral ng Pilipinas' (BSP) forecast range of 1.1 to 1.9 per cent for the month. The six-month average inflation now stands at 1.8 per cent, well below the government's 2 to 4 per cent target range.

Non-food inflation edged higher, driven by costlier housing, utilities, and fuels. Clothing and footwear prices also rose modestly, posting a YoY increase of 1.7 per cent in June. Month-on-month (MoM), prices in this category rose by 0.2 per cent, BSP said in a release.

MoM, seasonally adjusted headline inflation remained unchanged at 0.2 per cent, while core inflation was steady at 2.2 per cent for the fourth consecutive month.

BSP projects inflation to temporarily dip below target in 2025, before returning to within the 2 to 4 per cent range in the following two years. The central bank also flagged potential risks from global geopolitical tensions and external policy shifts. It reaffirmed its commitment to maintaining price stability to support economic growth and employment.

ALCHEMPro News Desk (HU)

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