Inflation quickens to 2 percent in January

MANILA, February 8 ------ The Philippines' headline inflation rate quickened to 2 percent in January, the Philippine Statistics Authority said. This was faster than the 1.8 percent inflation rate seen in December last year, but was within the 1.4 to 2.2 percent forecast of the Bangko Sentral ng Pilipinas. It was also within the 2 to 4 percent target range of economic managers. PSA Undersecretary and National Statistician Claire Dennis Mapa said housing costs climbed in January likely because rentals are usually adjusted in January.

Prices of food served in restaurants also increased faster, as well as prices of accommodations, the PSA said. Mapa said restaurants include establishments like carinderias. Mapa noted that lunch meals usually brought outside the home showed substantial price hikes—the cost of pork sinigang with rice jumped by about 10 percent, while the price of pork adobo with rice and a soft drink soared by 14 percent. "May malaking pagtaas talaga sa mga meals na kinokonsumo," Mapa said. “Ang nakikita namin, tumataas kasi yung raw materials din lalo na yung karne ng baboy, tumataas din ang ying mga enegry, kasi siyempre ginagamit mo electricity, maybe yung renta, kasi yung renta sa place, tumaas din, plus maybe yung wages,” he said.

Prices of clothing, furnishings, health, telco services, among others, also saw faster increases. Food and transport costs, however, saw slower increases. "Food inflation at the national level recorded an annual increase of 0.7 percent in January 2026 from 1.2 percent in the previous month. In January 2025, food inflation was higher at 4.0 percent," the PSA said. "Moreover, the transport index exhibited an annual decline of 0.3 percent during the month from an annual increase of 0.3 percent in December 2025."

Economists have said that inflation is likely to accelerate this year due to base effects from last year, or the generally lower inflation rates seen in 2025, which means that the numbers this year will look higher. “Yung inflation rate kasi natin nung 2025 ay nasa 1.7 percent average for the year. Mababa yan,” Mapanoted. “So, galing tayo sa medyo mababang inflation. So may base effect na magdasabi na pwedeng mataas ngayon yung inflation rate kumpara doon sa previous year. Kaya, the expectation is that it would be higher than our 1.7 percent,” he explained. “Whether it will breach 4 percent, maaga pa,” the national statistician said when asked about whether or not inflation will exceed the government’s target rate.

In a statement, Department of Economy, Planning, and Development (DEPDev) Undersecretary Rosemarie Edillon said the government will sustain efforts to support Filipino families’ purchasing power. The Bangko Sentral ng Pilipinas (BSP), for its part, said the monetary policy easing cycle is nearing its end. The central bank has reduced interest rates by 200 basis points since it began its rate easing cycle in August last year. Central banks usually cut interest rates when inflation eases to boost economic activity. “Any further easing is likely to be limited and guided by incoming data,” the BSP said Thursday. The BSP’s monetary board is meeting on February 19 to decide on the country’s reverse repurchase rate. The BSP cut its benchmark rate to 4.5 percent.

Source: news.abs-cbn.com