Inflation dips 1.4% in April; Metro Manila utility costs rise

Inflation in the Philippines continued to slow in April, easing to 1.4%, but Metro Manila residents experienced a rise in the cost of living, primarily driven by a sharp increase in utility prices.

During a press briefing at the Philippine Statistics Authority (PSA) Headquarters on May 6,  PSA Chief and National Statistician Claire Dennis Mapa reported that inflation nationwide slowed from 1.8% in March, which brings the year-to-date inflation rate for 2025 to 2%, well within the government’s target range of 2% to 4%.

“Ang pangunahing dahilan ng mas mababang antas ng inflation nitong Abril 2025 kaysa noong Marso 2025 ay ang mas mabagal na pagtaas ng presyo ng Food and Non-Alcoholic Beverages sa antas na 0.9%,” Mapa said.

The national decline in inflation was largely driven by slower increases in food and transport costs. 

Prices of food and non-alcoholic beverages rose by just 0.9%, down from 2.3% in March, with rice prices easing to 0.7% from 2.3%. The transport sector also saw a contraction of -2.1%, a significant drop from -1.1% the previous month, largely due to falling gasoline and diesel prices.

However, the situation was different in Metro Manila, where inflation rose to 2.4% in April, up from 2.1% in March. The increase was primarily attributed to a sharp rise in housing, water, electricity, gas, and other fuel costs, which surged by 5.1% from 2.2% in March. This uptick in utility prices accounted for over a third of the region’s inflation, significantly contributing to the regional price pressure.

While food prices in Metro Manila showed some relief, with inflation easing to 2.5% from 3.6%, the rise in utility costs overshadowed the benefits of cheaper food, which saw the inflation rate for transport fall in line with the national trend.

Despite the deceleration nationwide, housing and utilities remained a key challenge for urban households, particularly in Metro Manila, where inflationary pressures were most felt.

Department of Economy, Planning, and Development Undersecretary Rosemarie Edillon acknowledged the positive trend of slower inflation but stressed the need for continued vigilance.

“We must continue to push for decisive coordination to ensure price stability, especially for essential commodities. Our goal is not only to reduce inflation but to ensure that its benefits are felt by every Filipino household—through lower food costs and improved access to basic goods,” Edillon said.

While core inflation remained steady at 2.2%, April 2025 was marked as the lowest reading of inflation since November 2019.