The Philippines successfully maintained a low inflation environment throughout 2025, with the full-year rate settling well below the government's target, official data released this week shows. The Department of Economy, Planning, and Development (DEPDev) credited proactive government policies for stabilizing prices and protecting the purchasing power of Filipino families.
Full-Year and December Inflation Figures
According to the Philippine Statistics Authority (PSA), the country's headline inflation for the full year 2025 was 1.7 percent. This figure is notably lower than the government's target range of 2.0 to 4.0 percent for the year. However, the monthly data revealed a slight increase at the year's end, with inflation inching up to 1.8 percent in December 2025 from 1.5 percent in November.
DEPDev Secretary Arsenio M. Balisacan stated that the economy's resilience against inflationary pressures stemmed from timely and targeted state interventions. "Building on this momentum, the government will continue to pursue prudent fiscal and monetary coordination and advance structural reforms to sustain the downward inflation trend and support inclusive growth in 2026 and beyond," Balisacan said.
Typhoon Impact and Sectoral Price Movements
The modest rise in the December inflation rate was primarily driven by the aftermath of Typhoon Uwan, which disrupted agricultural production and supply chains. This led to a sharp reversal in food prices:
- Overall food inflation jumped from -0.3 percent to 1.2 percent.
- Vegetable inflation accelerated dramatically from 4.0 percent to 11.6 percent, with specific spikes in onions (79.0%), eggplants (29.4%), and pumpkins (20.1%).
- Fish inflation also saw a slight increase from 8.6 percent to 9.0 percent, partly due to limited arrivals of imports.
These increases were partially balanced by slower price growth in other areas. Meat inflation declined from 4.2 percent to 3.0 percent, aided by a decrease in African swine fever (ASF) cases that pulled pork inflation down. Chicken inflation also slowed due to surplus supply. Notably, rice prices remained moderate, recording a deflation of -12.3 percent.
Government Strategy for Sustained Stability
The government has outlined a continued commitment to keeping inflation within the target band of 2.0 to 4.0 percent for the years 2026 to 2028. A cornerstone of this strategy is a massive PHP 297.1-billion allocation for the agriculture sector in the 2026 national budget.
This funding is earmarked for projects designed to boost farm productivity and strengthen food security, including:
- Construction of farm-to-market roads and bridges.
- Development of food hubs, cold storage facilities, and rice mills.
- Programs to maintain affordable prices for agricultural products.
Concurrently, the Department of Energy is working to manage energy-related price pressures by accelerating the completion of 200 power generation projects to meet rising demand reliably.
Secretary Balisacan emphasized that these initiatives are part of a broader agenda. "These policy initiatives form part of our broader thrust to attain food security, improve human capital, and enhance the quality and efficiency of public service delivery—priorities that enable inclusive, broad-based growth for all Filipinos," he concluded.
