Inflation falls to 5-year low of 1.4% in April 2025 

Inflation in the Philippines cooled for the third straight month to 1.4% in April, keeping the consumer price index below the government’s target range of 2% to 4%, according to a report by Rappler.

The Philippine Statistics Authority said inflation slowed in the previous month amid easing food and oil prices, from 1.8% in March.

April’s figure is the lowest inflation rate since the 1.2% recorded in November 2019.

It brings the country’s average inflation print to 2% for the first four months of 2025.

According to National Statistician Dennis Mapa, April’s inflation rate further slowed due to a continuous drop in rice and vegetable prices.

Rice prices deflated for the 10th consecutive month, logging a deflation or negative inflation rate of -10.9%. The cost per kilo of the staple grain has been deflating since January amid the Department of Agriculture’s declaration of a food crisis and lower rice import tariffs.

Meanwhile, inflation of vegetable prices slowed to 2.3% from 6.9% in March due to increased production.

The drop in rice and vegetable prices helped offset electricity rate hikes and the Light Rail Transit Line 1 fare increases.

Power rates saw one of the biggest jumps in inflation, accelerating to 5.4% from the -0.7% deflation in March. Mapa attributed this to higher electricity demand amid the warm and dry season, colloquially called “summer.”

“It follows the supply and the demand. It (demand) really rises during the summer, so perhaps we’re seeing a rise in prices due to supply,” he explained.

All regions except Metro Manila saw slower inflation rates. The consumer price index in Metro Manila quickened to 2.4% in April, while inflation in other areas averaged at 1.2%.

Mapa said this is due to housing, water, electricity, gas, and other fuels’ heavier weight on Metro Manila’s inflation print. Rent and utility prices only hold a weight of 19.8% in the inflation rate for areas outside Metro Manila, while its overall weight for the capital region is 27%.

Monitoring agriculture

The continuing drop in inflation also comes weeks after the Bangko Sentral ng Pilipinas (BSP) slashed interest rates to 5.5%.

The BSP earlier forecast inflation would settle within 1.3% to 2.1% amid what it described as favorable domestic supply conditions. It cited lower oil prices, as well as the strengthening of the Philippine peso against the US dollar.

The Department of Economy, Planning, and Development (DEPDev) said the government will continue closely monitoring prices of key commodities, particularly agricultural products.

“Among the government’s ongoing efforts are initiatives by the Department of Agriculture, including the close monitoring of agricultural production and market prices, particularly for high-value crops such as vegetables, which are vulnerable to the ongoing extreme summer heat and are primarily sourced from northern regions,” it said in a statement.

DEPDev Undersecretary Rosemarie Edillon said the department wants to not only curb inflation, but ensure the drop is felt by Filipino households.