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SLOW INFLATION SEEN PREVAILING TILL END-’25
F
EJAP JOURNALISM AWARDS
Cai U. Ordinario
ILIPINOS can expect slow inflation to continue as the price of rice is expected to decline until the end of the year, according to the Philippine Statistics Authority (PSA). and 17.87 percent in the CPI of the Bottom 30 percent or the poorest Filipinos. “In general, the price of commodities under the food and nonalcoholic beverages sub basket slowed due to rice. The weight of rice in the food basket is almost 30 percent, one third of food is rice,” Mapa said. However, Mapa said there are “threats” to inflation, particularly meat, poultry, and fish prices. Meat and others recorded a yearon-year inflation of 9.1 percent in June while fish inflation grew 6.2 percent. It may be noted that meat and other parts of slaughtered land animals have a weight of 6.43 percent in the all-income household and 6.15 percent for the bottom 30 percent CPI. Meanwhile, the fish and other seafood commodity group has a weight of 5.66 percent for the allincome households and 8.5 percent for the bottom 30 percent CPI. “Well, for now, I cannot have the overall but what I can look at based on the data, what I can conclude is for certain items,” Mapa said.
HONORING BRIDGES BUILT THROUGH SERVICE Hospitality
veteran Rodrigo Camposagrado is recognized in #MadeItInChina, a book launched by the Philippine Embassy in Beijing celebrating Filipinos who have built meaningful lives and careers in China. The event marked both the 127th Philippine Independence Day and the 50th anniversary of Philippines-China diplomatic relations, highlighting enduring people-to-people ties. Full story on News A4.
PHL exec says mild US tariff drove ‘strong’ investor interest HEADLINE FIGURE
KEY DRIVER: RICE PRICES
→Higher than May 2025 (1.3%) →Lower than June 2024 (3.7%)
→Lowest rice inflation since 1995 →Expected to stay negative until end-2025
1.4% Inflation in June 2025
OUTLOOK
2025 Forecast: BSP projects below-target inflation due to falling rice prices Risks: →Oil price spike →Wage increase in NCR →Geopolitical conflict (Middle East) →US trade uncertainty
n Rice Deflation: -14.3% (June 2025)
n Major impact due to high CPI weight:
→8.87% (All Income Households) →17.87% (Bottom 30%)
❝In general, the price of commodities under the food and non-alcoholic beverages sub basket slowed due to rice. The weight of rice in the food basket is almost 30 percent, onethird of food is rice.❞ – PSA Chief Claire Dennis S.
Mapa, on rice’s contribution to lower food inflation
Continued on A2
NONIE REYES
On Friday, the PSA disclosed that the country’s inflation rate reached 1.4 percent in June, faster than the 1.3 percent posted in May but still slower than the 3.7 percent recorded in June 2024 (See: https:// businessmirror.com.ph/2025/07/04/ inflation-picks-up-1-4-in-june-psa/). In a briefing, National Statistician Claire Dennis S. Mapa told reporters that rice inflation is expected to be negative for the rest of the year. This will keep inflation below the low end of the government’s target of 2 to 4 percent. “[The] 1.3 percent, 1.4 percent [we recorded indicates that] in general we are already in the vicinity of 2 percent, lower than 2 percent,” Mapa said in the vernacular. “What we’re expecting is that it [rice prices] will be negative until the end of the year. [Rice] is assigned a higher weight in the inflation basket. So that is the good news [for us],” he also said. In June 2025, rice posted a deflation of 14.3 percent, the steepest decline posted by the country’s staple in the entire series of the PSA, which began in 1995. Rice has a weight of 8.87 percent in the Consumer Price Index (CPI) for All Income Households
EMPLOYEES work in a production facility in Malabon City. VEEJAY VILLAFRANCA/BLOOMBERG
Peza sees ₧300-B investments in ’25 T By Andrea E. San Juan
T
HE Philippine Economic Zone Authority (Peza) said it may approve as high as P300 billion in investments this year due to a strong investment pipeline which is expected to inject additional capital into the country’s Electronics, Electric Vehicle, Pharmaceutical, and Garments sectors, among others. In a recent televised interview, Peza Director General Tereso O. Panga said the investment promotion agency is revising upwards the upper limit range of its investment approvals target for this year, considering the volume of investments lined up. “Well, our conservative target, really, is 15 percent so that will be an additional P25 billion. So we were looking at P235250 billion. But that ambitious target, we’re about to review and calibrate…because of the leads that we’ve been getting [that]
towards the end of the year the [highest] projected increase is 40 percent, or P300 billion in investments,” Panga said. He noted that Peza is “actively” pursuing and assisting over 50 investment leads. In a Viber message sent to the BusinessMirror, the Peza chief said these investments in the pipeline are expected to be poured into the country’s Electronics, ITT, Electric Vehicles, Pharma, Renewable Energy, Data Center, and Garments sectors. The Peza Board earlier reported that it greenlighted P72.36 billion in investments in the first half of the year, or 59.1 percent higher compared to the P45.48 billion recorded in the same period last year. The investments approved in the January to June 2025 period are equivalent to 133 projects. These projects are seen to create 32,983 direct jobs for Filipinos, a 30.58-percent uptick in employment compared to the 25,259 jobs projected to be
H1 2025 PERFORMANCE
Peza-Approved Investments (Jan-June 2025) →72.36 Billion approved ▲Up 59.1% from P45.48B in H1 2024 133 projects approved →32,983 direct jobs created ▲+30.58% vs 25,259 jobs in H1 2024 →$1.26 Billion in expected export revenues
TOP SOURCES OF INVESTMENTS →South Korea P10.7 Billion (15%) →United States P3.2 Billion →Mainland China P2.5 Billion →Japan P2.2 Billion
❝This is the first time we
bagged a huge chunk of capital from the Americans and the Chinese.❞ — Peza Director General Tereso O. Panga
created in the same period a year ago. The investments that the country bagged in the first half of the year are also seen to generate $1.26 billion in export revenues. As to the source of investments, Panga said South Korea topped the list as it chipped in P10.7 billion worth of investments, or 15 percent of the total investments greenlighted by Peza in the first half. This was followed by the United States, with P3.2 billion; and Mainland China with P2.5 billion. Panga noted that this is the first time in history that the investment promotion agency bagged a huge chunk of the capital from the Americans and the Chinese. “This is one proof that there are companies already relocating, some of these American and Chinese companies are shifting production out of China, or putting up
HE global tariffs announced by US President Donald Trump in April triggered “strong” investor interest in the Philippines, which was threatened with a lower levy than most neighbors, a top trade official said. New investors are considering setting up shop in the Southeast Asian nation, while companies seeking to divert orders are looking to tap existing Philippine businesses with excess capacity, Trade Undersecretary Ceferino Rodolfo said in an interview on Thursday. Trump’s tariffs, which were paused for 90 days to July 9 to allow negotiations, included levies of 46 percent for Vietnam, 36 percent for Thailand, 32 percent for Indonesia and 24 percent for Malaysia. In contrast, the Philippines was only threatened with a relatively low levy of 17 percent, making it attractive compared to its Southeast Asian neighbors. “In our discussions with investors, they are saying the investments in the Philippines will indeed happen. It’s just a question of magnitude, depending on the result of July 9,” Rodolfo said. Electronics, garments, wearables and sporting goods companies have expressed interest in investing in the Philippines since Trump’s tariff announcement, the trade official added. While Trump paused the higher tariffs, in general reducing them to 10 percent during the negotiation period, countries are racing to reach agreements as the tariff deadline looms. Trump on Wednesday announced a deal with Vietnam that lowers the 46-percent levy announced in April to 20 percent. Manila viewed the initial tariff imposed by the US as beneficial to President Ferdinand Marcos Jr.’s push to woo investments, with a lower rate compared to its Asian neighbors. But challenges including poor infrastructure, high energy costs and regulatory unpredictability have been constant concerns among foreign
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Canada invites Marcos as both nations seek stronger ties, trade By Malou TalosigBartolome
C
ANADIAN Prime Minister Mark Carney has invited President Ferdinand Marcos Jr. to visit Canada, marking a push to strengthen ties as the two countries celebrate 75 years of diplomatic relations in 2024. During a phone call Friday, Carney and Marcos spoke about the strong connection between Canada and the Philippines, supported by the nearly one million Canadians of Filipino descent. President Marcos pushed for enhanced cooperation on trade and defense with Ottawa during his phone call with Carney. In his social-media post, the
chief executive said he had a “very good conversation” with Carney earlier this week about the common interests of the Philippines and Canada. “We discussed how our two nations can further strengthen and deepen cooperation in trade, defense and maintaining peace in our region,” Marcos said. The Canadian side also offered their condolences following the Lapu-Lapu Day tragedy in Vancouver, which affected Filipino communities across Canada. Carney said he sees more ways to grow investment and trade with the Philippines. “Prime Minister Carney emphasized opportunities to deepen Canada’s relationship with the Philippines in investment and
[FILE] Prime Minister Mark Carney takes a moment after lighting a candle at a memorial for victims after a vehicle drove into a crowd during a Filipino heritage festival in Vancouver, British Columbia, Sunday, April 27, 2025. SEAN KILPATRICK/THE CANADIAN PRESS VIA AP
commerce, including by advancing free trade,” according to a statement from his office. Manila and Ottawa have agreed in December 2024 to negotiate for a bilateral free-trade agreement. (See related story: https://businessmirror.com.ph/2024/12/05/phlcanada-to-resume-exploratory-talksfor-fta) Since 2021, Asean and Canada have been talking as well about having a comprehensive free-trade agreement, too. In 2023, merchandise trade between the two countries hit $3.4 billion, with imports from Canada worth $1.2 billion and exports from the Philippines totaling $2.2 billion. Sectors like clean energy, agri-
culture, education, and infrastructure are seen as promising areas of growth.
Working together in the Indo-Pacific
CARNEY and Marcos also agreed to work closely on keeping the Indo-Pacific region free, open and stable. Canada has expanded its presence in the region, including a new Agriculture and Agri-Food Office in Manila, and a Status of Visiting Forces Agreement (SOVFA) signed with the Philippines to support defense ties. The upcoming visit could help both countries build stronger partnerships in trade, security, and regional development. With a report by Samuel P. Medenilla
PESO EXCHANGE RATES n US 56.2810 n JAPAN 0.3883 n UK 76.8348 n HK 7.1727 n CHINA 7.8477 n SINGAPORE 44.1489 n AUSTRALIA 36.9822 n EU 66.1808 n KOREA 0.0414 n SAUDI ARABIA 15.0074 Source: BSP (July 4, 2025)