The Philippines have a rate of inflation that was at 2.9 per cent in January 2025. This is consistent with December 2024as per to Philippine Statistics Authority (PSA). The rate is in line with the range of government targets between 2% and 4 percent, and the 2024-year average of 3.2 percent.

The prices of tomatoes experienced the most rate of inflation. They reached 155.7 percent at the beginning of January in 2025. However, rice prices declined by 2.3 percentage, due to the high base and the previous inflation rate of double digits in 2024.

President Marcos stressed the necessity of an emergency in food security, noting the lack of effective tariff reductions on the price of rice. The administration is facing delays in declaring an emergency, causing problems to the buffer stocks of rice at National Food Authority warehouses.

The rate of inflation in Metro Manila slowed to 2.1 percent, but other areas were at 2.9 percent. Cagayan Valley recorded the highest regional inflation of 5.1 percentage, followed by Soccsksargen being at 1.1 0.1%.

The National Economic and Development Authority (NEDA) has highlighted its the efforts of stabilizing prices with ASF vaccinations and flood-control infrastructure. NEDA secretary Arsenio Balisacan declared, “Resiliency of our agri-food infrastructure will be among the most crucial goals we have.”

The Bangko Sentral ng Pilipinas (BSP) expects an increase in inflation caused by electricity and transportation cost increases, however it expects the pressure to be partially neutralized by lower rice prices as well as electricity cost. Central bank officials will be addressing issues with inflation during its forthcoming annual meeting on monetary policy.

Bank of the Philippine Islands economist Emilio Neri Jr. noted the potential effect of January’s data on rates of interest, especially when you consider an increase in economic activity and the external factors similar to U.S. monetary policy.

Source: Rappler