Central Visayas Maintains Highest Inflation Rate in the Philippines for Sixth Consecutive Month
Official data released in February 2026 reveals that Central Visayas continues to lead the nation in inflation, posting a rate of 5.6 percent in January. This marks the sixth straight month the region has held the title of the fastest-inflating area in the Philippines, even as national inflation saw a modest increase.
Broad-Based Price Pressures in Central Visayas
Inflation in Central Visayas remained broad-based, with most commodity groups experiencing faster annual price hikes during the month. The most dramatic surge was observed in restaurants and accommodation services, which skyrocketed to 9 percent in January from just 1 percent in December. This spike underscores the rising costs within the tourism and hospitality sector, a key driver of the regional economy.
Other notable increases included:
- Food and non-alcoholic beverages, which stayed elevated at 8.2 percent, unchanged from December, continuing to strain household budgets.
- Alcoholic beverages and tobacco, climbing to 4.8 percent from 3.6 percent.
- Clothing and footwear, rising to 2.6 percent from 1.5 percent.
- Housing, water, electricity, gas, and other fuels, accelerating sharply to 3.1 percent from 1.1 percent a month earlier.
- Furnishings, household equipment, and routine household maintenance, increasing faster at 2.8 percent from 1.5 percent.
Additionally, health inflation nearly doubled to 3.1 percent from 1.8 percent, while transport rebounded to 2.2 percent after a decline in December. Information and communication edged up to 0.9 percent, and recreation, sport, and culture climbed to 1.5 percent from 0.6 percent. Education services held steady at 2.6 percent, and personal care and miscellaneous goods accelerated to 3.2 percent from 2 percent.
National Inflation Trends and Key Drivers
At the national level, headline inflation ticked up to 2 percent in January from 1.8 percent in December 2025, though it remained lower than the 2.9 percent recorded in January 2025. The uptick was primarily driven by housing, water, electricity, gas, and other fuels, which accelerated to 3.3 percent from 2.5 percent in the previous month. Restaurants and accommodation services also contributed, posting faster inflation at 4 percent from 2.4 percent.
Higher annual price increases were noted in clothing and footwear, household furnishings and maintenance, health, information and communication, recreation and culture, and personal care and miscellaneous goods. These were partially offset by slower inflation in food and non-alcoholic beverages, alcoholic beverages and tobacco, and education services. Transport prices slipped into deflation, with a 0.3 percent annual decline.
Housing and utilities remained the largest contributor to overall inflation, accounting for 33.5 percent or 0.7 percentage point. Food and non-alcoholic beverages and restaurants and accommodation services each contributed 0.4 percentage point.
Easing Food Inflation and Government Response
National food inflation eased to 0.7 percent in January from 1.2 percent in December, significantly below the 4 percent recorded a year earlier. The slowdown was attributed to slower price increases in vegetables, meat, fish, and cooking staples, along with continued price declines in rice. Despite this easing, food prices still accounted for 15.1 percent, or 0.3 percentage point, of overall inflation, with fish and other seafood remaining the largest contributor.
Department of Economic Planning and Development Undersecretary Rosemarie G. Edillon, serving as officer-in-charge while Secretary Arsenio M. Balisacan is abroad, commented on the trend. "We see the easing of food inflation beneficial for Filipino households, particularly for lower-income families where food accounts for a larger share of expenditures," she said. The government is maintaining its 2 to 4 percent inflation target for 2026 and 2027 while remaining vigilant against emerging risks. "We will continue building on this progress by sustaining efforts to support Filipino families' purchasing power, alongside other reforms that strengthen resilience and promote long-term growth," Edillon added.
Core Inflation and Regional Disparities
Core inflation, which excludes selected food and energy items, rose to 2.8 percent in January from 2.4 percent in December, indicating sustained underlying price pressures. Regionally, inflation in the National Capital Region eased to 1.9 percent from 2.3 percent, driven by slower increases in housing and utility costs and food prices, as well as a deeper drop in transport costs.
Outside NCR, inflation accelerated to 2 percent from 1.7 percent, pushed mainly by higher housing and utility costs and faster price increases in services. Among regions outside NCR, 11 posted higher inflation rates in January. While Central Visayas remained the fastest-inflating region, Cagayan Valley recorded the lowest rate, with a 0.1 percent annual decline.
This data highlights the ongoing economic challenges in the Philippines, with regional disparities and sector-specific pressures shaping the inflation landscape as the country navigates its growth trajectory.
