BSP: Inflation likely cooled to near 10-year low

Manila, Philippines – Inflation, or the rise in consumer prices, probably cooled to a near 10-year low in July, at best, as falling retail rice costs could balance out price pressures from other factors.

In a press statement a week before the official release, the Bangko Sentral ng Pilipinas (BSP) said it “projects July 2025 inflation to settle within the range of 0.5 to 1.3 percent.”

If realized, that inflation reading would be the lowest since February 2016 which was 0.5 percent, according to data from the Philippine Statistics Authority (PSA).

June inflation was 1.4 percent that brought the year-to-date average to 1.8 percent.

“Upward price pressures for the month are likely to be driven by higher meat and vegetable prices partly due to unfavorable weather conditions, increased electricity rates, elevated domestic fuel costs, and the depreciation of the peso,” the central bank said on Thursday.

“These price pressures, however, could be partially offset by the continued decline in rice prices,” it added.

The official July inflation data will be out next week.

NewsWatch Plus Business News Anchor Lois Calderon contributed to this report.