Philippines Inflation Rate at 9-Month High

The annual inflation rate in the Philippines rose to 2% in January 2026, exceeding both market forecasts and the previous month’s 1.8%. This also marked the highest reading since February, mainly driven by a sharp increase in housing and utility costs, which climbed to 3.3%, a fifteen-month high, from 2.5% in December. Prices also rose faster for furnishings, household equipment and maintenance (2.3% vs 1.9%), restaurants and accommodation services (4% vs 2.4%), and personal care, miscellaneous goods and services (2.6% vs 2.2%). In contrast, inflation softened for food and non-alcoholic beverages (1.1% vs 1.4%) and alcoholic beverages and tobacco (3.1% vs 3.3%), while transport costs declined for the first time in five months (-0.3% vs 0.3%). On a monthly basis, consumer prices increased by 0.8% in January, following a 0.9% gain in the preceding period. Core inflation, which excludes certain food and energy items, rose to 2.8%, the highest since July 2024, from 2.4% in December.

The annual inflation rate in the Philippines rose to 1.8% in December 2025, from a three-month low of 1.5% in the previous month, surpassing market expectations of 1.4%. It marked the highest reading since March, primarily driven by a sharp increase in heavily weighted food and non-alcoholic beverages (1.4% vs 0.1% in November), particularly vegetables, tubers, cooking bananas and pulses and oils and fats. Inflation also increased at a faster pace for clothing and footwear (2.2% vs 1.8%). On the other hand, costs moderated for housing and utilities (2.5% vs 2.9%), transport (0.3% vs 1.7%), and alcoholic beverages and tobacco (3.3% vs 3.6%). On a monthly basis, consumer prices rose to 0.9% from 0.2% in November, above market forecasts of 0.3%. Meanwhile, core inflation, which excludes certain food and energy items, stood at 2.4% in December. The Philippines’ annual average inflation rate for 2025 stood at 1.7%, lower than the 2024 annual average inflation rate of 3.2%.

The annual inflation rate in the Philippines eased to 1.5% in November 2025, down from 1.7% in October and below the expected 1.6%. This marked the lowest level in three months and remained well below the central bank’s 2%–4% target range. Price growth slowed for food and non-alcoholic beverages (0.1% vs 0.5% in October), reflecting softer annual increases in vegetables, tubers, plantains, cooking bananas, and pulses. Inflation also moderated for alcoholic beverages and tobacco (3.6% vs 4.0%), furnishings and household equipment (2.0% vs 2.4%), restaurants and accommodation services (2.6% vs 2.4%), and personal care and miscellaneous goods (2.4% vs 2.5%). In contrast, price pressures picked up for housing, water, electricity, gas, and other fuels (2.9% vs 2.7%), as well as transport (1.7% vs 0.9%). On a monthly basis, the CPI grew 0.2%, following a 0.1% gain in October. Core inflation, which excludes certain food and energy items, eased to 2.4%, a four-month low, from 2.5% in October.