MANILA — The government on Tuesday reported a significant drop in the country’s inflation rate, which slowed to 0.9 percent in July—its lowest level in nearly six years. Malacañang welcomed the development, describing the figure as “magic” considering the ongoing global economic instability.
“Maganda pong ulat ‘yan,” said Presidential Communications Office’s (PCO) undersecretary and Palace press officer Claire Castro during a media briefing in New Delhi, India on Wednesday.
The last time inflation dropped to this level was in October 2019, when it registered at 0.6 percent. July’s figure is also markedly lower than the 4.4 percent recorded during the same month last year and below June 2025’s 1.4 percent.
According to Castro, the Philippines achieved this feat despite a host of external pressures.
“Parang nagkaroon ng magic… mahirap po talaga sa panahong ito,” she said, citing challenges such as the conflict in the Middle East, the war in Ukraine, and ongoing tariff tensions in the United States.
She credited the decline mainly to more affordable prices of key food items.
“Kapag wala pa mga external mga conditions or circumstances na makaka-apekto dito, maaari magtuloy-tuloy po ang magandang balita na ‘yan,” she added.
The Philippine Statistics Authority (PSA) attributed the slowdown to the deceleration in utility costs and falling prices of food commodities, especially rice and vegetables.
National Statistician and PSA chief Claire Dennis Mapa confirmed the figures, stating that July’s inflation rate brought the year-to-date average to 1.7 percent—comfortably below the government’s target range of 2 to 4 percent for 2025./PN
