Philippines February inflation hits 5-month low on easing food prices

Philippine inflation slowed to a five-month low of 2.1% in February from 2.9% in January, the statistics agency said, driven by slower increases in food prices.

The February figure, the lowest since October 2024, brought the January-February average to 2.5%, the Philippine Statistics Authority (PSA) said. In February 2024, inflation was 3.4%.

"This sustained downward trend confirms that our proactive measures to curb inflation are delivering results, especially on helping alleviate the burden on vulnerable sectors," Finance Secretary Ralph Recto said in a statement. "However, we will not be complacent—we will continue to monitor anything that could cause price increases, especially in food."

Inflation for the bottom 30% income group fell to 1.5% in February from 2.4% in January. Core inflation, which excludes volatile food and energy prices, eased to 2.4%.

The lower headline inflation was driven by easing prices in both food, which slowed to 2.6% from 4.0%, and non-food items, which fell to 1.7% from 2.2%.

Rice prices contracted by 4.9% year-on-year, a sharp reversal from the 23.7% surge a year ago and an improvement from the 2.4% decline in January. Imported rice in the capital region saw a double-digit drop of 13.7%.

"The government will sustain its efforts to keep inflation low and manageable to protect the purchasing power of Filipinos," National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said in a statement.

Vegetable inflation also eased to 7.1% from 21.1% in the previous month. Meat inflation rose to 8.8% from 6.4%.

Balisacan said the Department of Agriculture (DA) would implement a La Niña action plan to mitigate the impact of expected typhoons and heavy rainfall.

The DA has also implemented a fuel assistance program for farmers and is working to accelerate the commercial use of an African Swine Fever vaccine.

President Ferdinand Marcos Jr. signed an executive order granting real property tax relief to independent power producers, aiming to ensure a stable electricity supply.

"The downward trend in headline inflation indicates that our efforts to combat inflationary pressures are working. However, we will not be complacent in addressing causes of commodity price increases, particularly for food, to help uplift the lives of poor and vulnerable Filipino families," Balisacan said.