Proactive and well-coordinated government measures to stabilize prices and safeguard the purchasing power of Filipino households helped keep inflation low in 2025, according to the Department of Economy, Planning, and Development (DEPDev), following today’s release of the December 2025 inflation report.
The Philippine Statistics Authority (PSA) reported today (January 6) that the country’s full-year headline inflation stood at 1.7 percent, well below the government’s 2.0-4.0 percent target range for 2025. This comes as headline inflation inched up to 1.8 percent in December 2025, from 1.5 percent in November 2025.
“Despite global headwinds and domestic challenges, the Philippine economy has remained resilient against inflationary pressures due to the government’s timely and targeted 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,” said DEPDev Secretary Arsenio M. Balisacan.
The slight uptick in December inflation rate can be attributed to the impact of Typhoon Uwan, which disrupted food production. Food inflation rose from –0.3 percent to 1.2 percent, while vegetable inflation accelerated from 4.0 percent to 11.6 percent, driven by higher inflation of onions (79.0% from 48.2%), eggplants (29.4% from –6.5%), and pumpkins (20.1% from 8.8%). Likewise, fish inflation increased slightly, from 8.6 percent to 9.0 percent, partly due to limited import arrivals.
These increases were partly offset by slower inflation in meat products, which declined from 4.2 percent to 3.0 percent. The decrease in the cases of African swine fever (ASF) helped pull pork inflation down to 4.8 percent from 7.0 percent, while surplus supply drove chicken inflation slower from 1.9 percent to 0.7 percent. In addition, rice prices remained moderated, recording a deflation of –12.3 percent from –15.4 percent.
The government remains steadfast in implementing policies that temper price pressures and maintain the inflation rate within the 2.0 to 4.0 percent target range for 2026 to 2028. A key component of this approach is the PHP297.1-billion allocation for the agriculture sector in the 2026 national budget. This budget prioritizes boosting farmer productivity and strengthening food security through measures such as: the construction of farm-to-market roads and bridges; development of food hubs, cold storage facilities, and rice mills; and programs to help maintain affordable prices of agricultural products.
To address the impact of rising electricity demand and manage energy-related price pressures, the Department of Energy is accelerating the completion of 200 power generation projects, ensuring that committed capacity comes online as scheduled and meets safety and reliability standards.
“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,” Balisacan added.
