RETAIL price growth of general goods in the National Capital Region (NCR) was steady in July following stable food price growth, the Philippine Statistics Authority (PSA) said on Wednesday.
Citing preliminary data, the PSA said the country’s general retail price index (GRPI) grew 0.8% year on year in July, unchanged from May and June and lower than the 1.9% year-earlier rate.
In the year to date, Metro Manila retail price growth averaged 1%, against 2.1% a year earlier.
“The inflation rate has been falling, and this is reflected in the GRPI,” Cid L. Terosa, economist at the University of Asia and the Pacific, said in an e-mail.
The PSA reported July inflation at 0.9%, against 1.4% in the previous month and 4.4% a year earlier.
In the seven months to July, inflation averaged 1.7%, below the Bangko Sentral ng Pilipinas (BSP) 2025 inflation target of 2-4%.
Growth in food prices, weighted at about 40%, was 1.1% in July, unchanged from June and down from the 2.4% year-earlier rate.
Compared to June, beverages and tobacco was the only subindex posting stronger growth, picking up to 3.6% from 3.4%.
Price growth decelerated for chemicals, including animal and vegetable oils and fats (1.9% from 2%), miscellaneous manufactured articles (0.3% from 0.4%), and crude materials, inedible except fuels (0.2% from 0.3%).
The subindices of manufactured goods classified chiefly by materials, and machinery and transport equipment were flat year on year.
“In August 2025, I expect NCR retail prices to move sideways relative to July 2025. The GRPI in August 2025 will be lower than in August 2024,” Mr. Terosa said.
Reinielle Matt M. Erece, an economist at Oikonomia Advisory and Research, Inc., said sluggish demand continues to slow down trading activity.
However, he expects sluggish price growth bottoming out and that the May-July numbers could be low for the year.
“We may see a slight uptick in August due to the onset of typhoons, and also the start of the holiday season may spark higher demand for products which may drive prices higher,” he said in an e-mail.
The PSA uses the GRPI as a deflator in the National Accounts, particularly in the retail trade sector, and serves as a basis for forecasting. — Matthew Miguel L. Castillo
