The Philippines’ inflation rate remained stable at 2.9 percent in January 2025, a positive sign of the government’s commitment to price stability, according to the National Economic and Development Authority (NEDA). This figure aligns with targets set in the Philippine Development Plan (PDP) 2023-2028.
NEDA Secretary Arsenio Balisacan noted that while food inflation continued to be the primary driver, contributing 1.5 percentage points to the overall rate, it was offset by lower inflation in key sectors. These included housing, water, electricity, gas, and fuels (2.2 percent, down from 2.9 percent); restaurants and accommodation services (3.2 percent, down from 3.8 percent); and clothing and footwear (2.3 percent, down from 2.4 percent).
A notable development was the -2.3 percent deflation in rice prices year-on-year. Despite this, the government is actively working to ensure more affordable rice. The Department of Agriculture (DA), endorsed by the National Price Coordinating Council, has declared a food security emergency. This declaration allows for the release and sale of rice buffer stocks from the National Food Authority at reduced prices in designated Kadiwa ng Pangulo sites.
Addressing food inflation remains a top priority, Balisacan emphasized. The lingering effects of previous typhoons pushed national food inflation to 4.0 percent in January 2025, up from 3.5 percent in December 2024. This increase was primarily fueled by faster inflation in vegetables, tubers, plantains, cooking bananas, and pulses, which rose to 21.1 percent from 14.2 percent.
The DA is implementing several strategies to mitigate the impact of anticipated La Niña conditions. These include constructing and rehabilitating water management systems, and providing agricultural inputs like submergence-tolerant and early-maturing seed varieties, livestock, and promoting diversified farming systems.
The agency is also intensifying its African Swine Fever vaccination campaign and collaborating with the Food and Drug Administration to expedite the approval of the Avian Influenza vaccine. Funding of PHP300 million is being sought for vaccine testing, which is expected to begin in March 2025.
The Philippine Atmospheric, Geophysical, and Astronomical Services Administration (PAGASA) has issued an early warning to relevant agencies, forecasting four to ten tropical cyclones between February and July 2025. This advisory emphasizes the need for continued vigilance and preparedness.
