Finance Secretary Ralph G. Recto has assured the public that food prices will remain stable as the government ramps up its production support measures amid a temporary uptick in inflation in August 2025 caused by weather disturbances.
While the headline inflation in August 2025 increased to 1.5% from 0.9% in July 2025, it remains manageable and well below the government’s 2.0% to 4.0% target range for the year. The year-to-date average inflation rate stood at a low 1.7%.
“Kahit napanatili natin ang mababang inflation, mas paiigtingin pa ng gobyerno ang mga hakbang para suportahan ang produksyon at upang makapaghanda nang mas maaga lalo na sa epekto ng masamang panahon sa ating mga pananim at pangingisda,” Secretary Recto said.
“Patuloy naming prayoridad na protektahan ang halaga ng bawat pisong kinikita ng bawat pamilyang Pilipino laban sa pagtaas ng mga pangunahing bilihin,” he added.
The inflation in August was primarily driven by food, which posted a slight uptick of 0.9% due to higher prices of vegetables (10.0% year-on-year from -4.7%) and fish (9.5% yoy from 6.3%) caused by adverse weather conditions.
Nevertheless, rice prices continued to drop by 17.0%, a steeper decline than -15.9% last month and the sharpest drop since 1995.
This especially benefited low-income households, as inflation for the bottom 30% contracted by 0.6% in August, marking the third consecutive month of relief for vulnerable families.
Gov’t interventions to stabilize prices amid weather-related disturbances
To keep food prices affordable and support farmers and fisherfolk affected by recent weather shocks, the Department of Agriculture (DA) rolled out input support, including free seeds and seedlings for rice, corn, and vegetables, along with rice distribution from the National Food Authority (NFA) for consumption in affected areas.
The government also tapped the Quick Response Fund (QRF) to accelerate rehabilitation and recovery efforts. The assistance includes a zero-interest loan of up to PHP 25,000 under the Survival and Recovery (SURE) Loan Program of the Agricultural Credit Policy Council (ACPC), and indemnification of insured affected farmers through the Philippine Crop Insurance Corporation (PCIC).
The DA is set to launch a command center in November to strengthen data-driven agricultural supply chain management and improve supply-demand forecasting, ensuring faster government response to potential disruptions.
To manage non-food inflation and keep energy costs affordable, the Department of Energy (DOE) is fast-tracking energy reforms through three key initiatives.
These include the Net-Metering Advancement Program, which cuts rooftop solar permitting from 360 to 90 days; the Lifeline Rate Expansion Program, which broadens subsidized electricity access for low-income households; and the Accelerated Power Plant Completion Program, which pushes 220 projects for completion by 2028 to boost supply and reliability.
To help alleviate transport costs, the DOE is expanding clean transport options by targeting 7,300 electric vehicle (EV) charging stations by 2028, up from about 1,100 at present. The program under the Electric Vehicle Industry Development Act (EVIDA) promotes wider EV adoption, reducing reliance on costly oil imports.
