Inflation rises to 1.4%, driven by electricity, education costs; food prices fall

Inflation in the Philippines slightly rose to 1.4 percent in June from 1.3 percent in May, with prices of staples like rice falling at their steepest since 1995.

The uptick was primarily due to faster increases in electricity costs and education expenses, while food inflation eased further to 0.1 percent during the month.

Specifically, electricity rates rose to 7.4% in June from 2.8% in May, and education expenses increased to 5.4% from 4.2%, contributing to the overall rise in nonfood goods prices.

The decline in food prices was mainly due to annual decreases in vegetable prices and a record low rice deflation of -14.3 percent, with the government's PHP20 per kg. rice program playing a significant role.

To stabilize food supply chains further, the Department of Agriculture (DA) will intensify industry recovery programs and establish an Onion Research and Extension Center to enhance seed quality and increase farm yields.