The Philippines reported a cooling inflation rate of 0.9% in July 2025, down from 1.4% in June, marking the lowest inflation level since October 2019. This decline was supported by a seventh consecutive month of falling rice prices. The subdued inflation rate remains below the central bank’s target, providing room for further interest rate cuts this year. Concurrently, the Philippine economy grew by 5.5% in the second quarter of 2025, aligning with analysts’ expectations but lower than the 6.5% growth recorded in the same period in 2024. Economic officials expressed confidence in achieving the 2025 GDP growth target, projecting improved performance in the second half of the year aided by lower inflation and prospective rate reductions. In contrast, Indonesia’s economy expanded by 5.12% year-on-year in the second quarter, exceeding expectations and marking the fastest growth in two years. Despite this strong GDP growth, some economists have questioned the accuracy of Indonesia’s reported data. Indonesian officials attributed the growth to government stimulus measures, highlighting the country’s economic performance as superior within the G20 and ASEAN regions.