Philippine inflation in January 2025 remains at 2.9%

The Philippine Statistics Authority (PSA) said on February 5 that the country's inflation rate in January 2025 was 2.9%, stable from December 2024. Although this rate is marginally higher than the 2.8% recorded in January 2024, it is still within the 2%–4% target range set by the government.

The PSA attributed the increase to higher yearly growth in transport (1.1% from 0.9%), alcoholic beverages and tobacco (3.5% from 3.1%), and food and non-alcoholic beverages (3.8% from 3.4%). In contrast, there had been no inflation in financial services, which had decreased by 0.6% in December 2024.

Inflation decreased in several sectors, including clothing and footwear (2.3% from 2.4%), housing and utilities (2.2% from 2.9%), furnishings and household equipment (2.6% from 2.7%), recreation, sports, and culture (2.4% from 2.5%), education services (4.2% from 4.3%), restaurants and accommodation services (3.2% from 3.8%), and personal care and miscellaneous goods (2.8% from 2.9%).

Food inflation rose to 4% from 3.5% in December 2024, driven by a significant rise in the prices of vegetables, tubers, plantains, cooking bananas, and pulses, which surged to 21.1% from 14.2%. The prices of fish and seafood increased to 3.3% from 1%, and meat prices rose to 6.4% from 4.9%. Oils and fats also saw a higher annual growth rate of 2.2% from 0.9%.

However, inflation for corn, flour, bread, pasta, and fruits and nuts slowed down. Core inflation, which excludes volatile food prices, decreased to 2.6% in January 2025 from 2.8% in December 2024.