PH’s inflation rate flat at 2.9% in January 2025

At a press conference, PSA chief and National Statistician Claire Dennis Mapa said the country’s overall inflation —which measures the rate of increase in the prices of consumer goods and services— stood at 2.9%.

Last month’s print was the same level seen in the previous month.

January’s headline inflation fell within the Marcos administration’s target range of 2% to 4%.

The unchanged inflation print seen in the first month of 2025 was due to the increase in Food and Non-Alcoholic Beverages (3.8% from 3.4%), Alcoholic Beverages and Tobacco (3.5% from, 3.1%), and Transport (1.1% from 0.9%) which was offset by the slowdown in inflation rates in the following commodity groups:

Clothing and footwear - 2.3% from 2.4%Housing, water, electricity, gas and other fuels - 2.2% from 2.9%
Furnishings, household equipment and routine household maintenance - 2.6% from 2.7%
Recreation, sport and culture - 2.4% from 2.5%
Education services - 4.2% from 4.3%
Restaurants and accommodation services - 3.2% from 3.8%
Personal care, and miscellaneous goods and services - 2.8% from 2.9%
Nonetheless, National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said the flat inflation rate in January was “a positive indicator of the government’s commitment to ensure more stable prices in line with the targets of the Philippine Development Plan (PDP) 2023-2028.”

Likewise, the Bangko Sentral ng Pilipinas (BSP) said that last month’s inflation rate was within its forecast range of 2.5% to 3.3%.

The Bangko Sentral ng Pilipinas (BSP) said the latest inflation data aligns with its outlook, expecting inflation to stay within target. The rice tariff reduction and negative base effects are seen as key factors in supporting disinflation.  

Food inflation rose to 4% in January 2025 from 3.5% the previous month, despite a decline in rice inflation to 2.3%. The main contributors to the increase were vegetables, tubers, plantains, and pulses, which surged to 21.1%, mainly due to a 155.7% rise in tomato prices. Fish and seafood inflation also rose to 3.3%, while meat prices increased to 6.4%.  

National Economic and Development Authority (NEDA) chief Arsenio Balisacan said addressing food inflation remains a priority, especially with the Philippine Atmospheric, Geophysical, and Astronomical Services Administration (PAGASA) warning of 4-10 tropical cyclones from February to July 2025. The Department of Agriculture (DA) is implementing measures to mitigate La Niña’s impact, including water management projects and the distribution of climate-resilient crops and livestock.  

The DA is also expanding its vaccination campaign against African Swine Fever and working with the Food and Drug Administration to fast-track the approval of the Avian Influenza vaccine. A ₱300 million budget is being secured for vaccine testing, expected to begin in March 2025.  

Balisacan added that investments in power transmission through the Maharlika Investment Corporation (MIC) and the Department of Energy could help lower electricity costs.  

The BSP noted that inflation risks remain, particularly due to potential increases in transport fares and electricity rates. However, lower rice import tariffs may help contain inflation. The central bank will discuss its monetary policy stance in a meeting on February 13, 2025, and will take a cautious approach to ensure price stability while supporting economic growth.

Source via GMA News