Philippines 2025 Inflation Falls Below Target

(MENAFN) Price growth in the Philippines plummeted to just 1.7 percent for 2025, falling significantly beneath the administration's 2 to 4 percent benchmark, according to data unveiled Tuesday by the Philippine Statistics Authority (PSA), even as costs edged higher during December's final reading.

During a media briefing, PSA Chief Claire Dennis Mapa disclosed that monthly inflation accelerated to 1.8 percent in December, up from November's 1.5 percent reading.

However, Mapa emphasized that the yearly average stayed firmly within comfortable territory below official thresholds, signaling broadly muted cost increases throughout the period.

The December climb stemmed primarily from escalating costs in food and non-alcoholic beverages, alongside accelerated price growth across clothing and footwear categories, Mapa explained.

Meanwhile, core inflation—which excludes unpredictable food and energy components—held steady at 2.4 percent across 2025, reinforcing the year's overall low-pressure pricing climate.

"Proactive and well-coordinated government measures to stabilize prices and safeguard the purchasing power of Filipino households helped keep inflation low in 2025," the country's Department of Economy, Planning, and Development (DEPDev) declared.

DEPDev Secretary Arsenio Balisacan added in a companion release: "Despite global headwinds and domestic challenges, the Philippine economy has remained resilient against inflationary pressures due to the government's timely and targeted interventions."

Capitalizing on this trajectory, Balisacan indicated authorities would maintain disciplined fiscal-monetary alignment while pushing forward structural reforms designed to preserve the downward inflation path and bolster inclusive expansion through 2026 and subsequent years.

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