Philippines' January inflation steady at 2.9%

The Philippines' inflation rate held steady at 2.9% in January, matching the December 2024 figure and remaining within the government's 2%-4% target range, the Philippine Statistics Authority (PSA) said.

The National Economic and Development Authority (NEDA) described the stable inflation as a positive sign of the government's commitment to price stability, in line with targets set in the Philippine Development Plan (PDP) 2023-2028.

The PSA data showed faster annual increases in food and non-alcoholic beverages (3.8% vs 3.4%), alcoholic beverages and tobacco (3.5% vs 3.1%), and transport (1.1% vs 0.9%).

NEDA said food inflation, contributing 1.5 percentage points to overall inflation, was offset by lower inflation in housing, water, electricity, gas and fuels (2.2% vs 2.9%), restaurants and accommodation services (3.2% vs 3.8%), and clothing and footwear (2.3% vs 2.4%).

Rice prices saw a 2.3% year-on-year deflation in January. The government is taking steps to further lower rice prices, including allowing the release of buffer stocks from the National Food Authority at lower prices in select Kadiwa ng Pangulo sites, following a food security emergency declaration by the Department of Agriculture (DA).  

Economic Planning Secretary Arsenio Balisacan said reducing food inflation is a top government priority. National food inflation rose to 4.0% in January from 3.5% in December, driven by faster inflation in vegetables, tubers, plantains, cooking bananas, and pulses (21.1% vs 14.2%). This was partly attributed to the lingering effects of last year's typhoons.

The Philippine Atmospheric, Geophysical and Astronomical Services Administration has warned of four to ten tropical cyclones between February and July 2025.

The DA is implementing measures to mitigate the potential impact of La Niña, including improving water management systems and providing farmers with submergence-tolerant and early maturing seed varieties, livestock, and promoting diversified farming. The agency is also ramping up its African Swine Fever vaccination campaign and working to expedite Avian Influenza vaccine approval, with 300 million pesos earmarked for vaccine testing starting in March 2025.  

Meanwhile, the Maharlika Investment Corp. and the Department of Energy expect government investment in power transmission to lower electricity costs.  

"President Marcos has emphasized that there should be no room for complacency as we work toward our targets this year and the medium-term," Balisacan said. "We remain vigilant and proactive in anticipating and addressing future developments, whether upside or downside risks, unforeseen or otherwise. Resiliency of our agri-food systems will be one of our most important goals to ensure low and stable prices for all Filipinos."