MANILA, Philippines — The Philippine Statistics Authority (PSA) has reported a significant easing of inflation in April 2025, with the headline rate dropping to 1.4%, compared to 1.8% in March and 3.8% during the same period last year.

This marks the lowest inflation rate in the country since November 2019. The average inflation rate from January to April 2025 now stands at 2.0%.

The PSA attributed the slowdown in inflation primarily to a deceleration in the prices of food and non-alcoholic beverages, which increased by only 0.9% in April, a decrease from 2.2% in March.

Notably, the price of rice saw a steep decline, with an inflation rate of -10.9% in April, down from -7.7% the previous month.

Additionally, transportation costs experienced a year-on-year decrease of 2.1% in April, further contributing to the overall decline in inflation.

Certain categories of goods, including alcoholic beverages and tobacco, housing, water, electricity, gas, and health, recorded rising inflation rates in April compared to March.

Despite this, food inflation markedly eased to 0.7%, down from 2.3% in March, contrasting sharply with the 6.3% recorded in April of the previous year.

Major contributors to food inflation included meat and fish, despite increased prices in dairy products and oils.

In parallel, the PSA also announced a decrease in unemployment figures for March 2025, with the unemployment rate holding steady at 3.9%, translating to approximately 1.93 million unemployed individuals.

This figure reflects a slight decline from 1.94 million individuals in February and 2 million in March 2024. The employment rate remained at 96.1%, which corresponds to around 48.02 million employed Filipinos.

However, underemployment, defined as individuals seeking additional work or longer hours, rose to 13.4% in March, up from 10.1% in February.

The service sector continued to be the largest employer, comprising 62% of the workforce, with notable job increases in education, administrative support, and health sectors.

In response to the recent inflation report, the Bangko Sentral ng Pilipinas (BSP) acknowledged the current inflation figure as being within its forecast range of 1.3% to 2.1%.

The BSP indicated a more accommodative monetary policy stance in light of manageable inflation, while remaining vigilant of potential risks, including fluctuating global commodity prices and transport charges.

This economic landscape reflects ongoing adjustments in the Philippines as it seeks to stabilize both inflation and labor market conditions in the wake of shifting global economic dynamics.