06.01.202601:35:26UTC+00Philippines Inflation Rate at 9-Month High

In December 2025, the annual inflation rate in the Philippines increased to 1.8%, rising from a three-month low of 1.5% in November, and exceeding market predictions of 1.4%. This represents the highest inflation rate observed since March, largely attributed to a significant rise in the cost of food and non-alcoholic beverages, which notably increased to 1.4% from 0.1% the previous month. Key contributors to this surge included price hikes in vegetables, tubers, cooking bananas, pulses, as well as oils and fats. Additionally, the inflation rate for clothing and footwear accelerated to 2.2% from 1.8%. Conversely, the costs associated with housing and utilities decreased to 2.5% from 2.9%, while inflation for transport and alcoholic beverages and tobacco also slowed, registering at 0.3% and 3.3% respectively, compared to 1.7% and 3.6% in November. On a month-to-month basis, consumer prices increased to 0.9% from 0.2% in November, surpassing market projections of 0.3%. Meanwhile, core inflation—excluding certain food and energy items—was recorded at 2.4% in December. For the entire year, the Philippines' annual average inflation rate was 1.7%, a decline from the 2024 average annual inflation rate of 3.2%.