Palace hails 0.9% inflation drop as ‘magical’

Malacañang last week celebrated what it called a “magical” drop in inflation, as the country posted a six-year low of just 0.9% in July — a rare economic bright spot amid global turmoil.

“This is welcome news,” said Presidential Communications Office Undersecretary and Palace Press Officer Claire Castro during a media briefing with the Philippine press corps in India, where President Ferdinand R. Marcos Jr. is currently on a state visit.

With multiple global crises threatening economies worldwide — including the conflict in the Middle East, the ongoing war in Ukraine, and tariff tensions in the United States — Castro said the Philippines’ ability to keep inflation in check defied expectations.

“Parang nagkaroon ng magic… It’s a really difficult time,” she said, noting that the inflation slowdown comes despite intense external pressures.

Castro attributed the easing of inflation to lower prices of key food items, especially rice and vegetables — staples that often drive cost-of-living spikes for ordinary Filipinos.

She expressed cautious optimism, adding that if no further global shocks disrupt supply chains or trade, the downtrend may continue.

“Kapag wala pang external conditions or circumstances na makaka-apekto dito, maaari magtuloy-tuloy po ang magandang balita na ‘yan,” she said.

The Palace views the development as a sign of effective economic management, hoping it will translate to better purchasing power and relief for Filipino households in the months ahead.