Central Visayas Inflation Soars to 6% as Food Costs Drive Price Hikes
Inflation in the Philippines accelerated to 2.4 percent in February 2026, up from two percent in January, according to data released by the Philippine Statistics Authority (PSA) on Thursday, March 5, 2026. The increase was primarily fueled by higher food and utility costs, reflecting ongoing economic pressures.
Regional Inflation Trends
Among all regions, Central Visayas, which includes Cebu and Bohol, recorded the highest inflation rate at six percent. This marks the seventh consecutive month that the region has posted the fastest price increases nationwide. The surge in inflation was largely driven by rising food prices, with food and non-alcoholic beverages increasing to 9.3 percent in February from 8.2 percent in January.
Price increases also accelerated in restaurants and accommodation services, rising to 9.7 percent from 9.1 percent, indicating higher costs in dining and hospitality sectors. Other commodity groups that experienced faster price growth included:
- Alcoholic beverages and tobacco: 5.3 percent from 4.8 percent
- Housing, water, electricity, gas, and other fuels: 4.1 percent from 3.1 percent
- Furnishings and household maintenance: 5.6 percent from 2.8 percent
- Recreation, sport, and culture: four percent from 1.5 percent
In contrast, inflation for health services remained steady at 3.1 percent, while information and communication stayed unchanged at 0.9 percent. Education services also held at 2.6 percent. Meanwhile, transport prices posted a sharper decline of 1.7 percent in February, reversing the 2.2 percent increase recorded in January, which helped moderate overall price pressures in the region.
National Inflation Overview
The country's 2.4 percent February inflation rate falls within the Bangko Sentral ng Pilipinas' (BSP) forecast range of 2.3 to 3.1 percent for the month. The BSP noted that average inflation from January to February stood at 2.2 percent, below the target of three percent for the full year but within the tolerance range of ±1.0 percentage point around the target.
The PSA highlighted that the increase in headline inflation was mainly driven by faster price increases in food and non-alcoholic beverages, which rose 1.8 percent in February from 1.1 percent in January. Housing and utilities, food, and restaurants accounted for the largest contributions to the February inflation rate.
Food inflation nationwide accelerated to 1.6 percent from 0.7 percent in January, although it remained below the 2.6 percent recorded a year earlier. The rise in food prices was largely attributed to a slower decline in rice prices, which fell 3.4 percent year-on-year compared with the steeper 8.5 percent drop in January, as well as higher price increases in corn, fish and seafood, vegetables, fruits, and dairy products.
Core inflation, which excludes selected food and energy items, also edged higher to 2.9 percent in February from 2.8 percent in January, indicating persistent underlying price pressures. Across regions, areas outside the National Capital Region posted inflation of 2.5 percent, while Metro Manila's inflation remained steady at 1.9 percent in February.
Government Response and External Factors
In a statement, the Department of Economy, Planning, and Development (DEPDev) confirmed that the February 2026 inflation still falls within the government's two to four percent inflation target for 2026 and 2027. DEPDev Secretary Arsenio Balisacan attributed the elevated inflation to the increasing conflict in the Middle East, which has impacted global oil prices and economic stability.
Balisacan vowed that the government's mitigating measures will continue, including the possible lifting of excise taxes on petroleum products if global oil prices breach US$80 per barrel to address upside inflation pressures. He emphasized that the government will implement measures to reduce fuel consumption, starting with government offices, and encouraged the private sector to follow suit.
These measures include the use of shuttle buses, encouraging car-pooling, and implementing flexible work arrangements such as work-from-home and compressed workweeks. Balisacan added that the government is aiming to implement long-term strategies to reduce demand for imported oil by incentivizing renewable energy and alternative fuels, promoting active transport, and strengthening energy conservation programs.
He concluded by stating, "We are ready to deploy timely and targeted interventions should external shocks intensify. Our priority is to protect vulnerable households, support affected industries, and sustain the country's growth momentum amid global uncertainties."
