Inflation quickens to 11-month high

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February 6, 2026 | 12:00am

Hits 2% in January

MANILA, Philippines —  Inflation accelerated to an 11-month high in January, amid faster increases in utility and restaurant and accommodation costs, according to the Philippine Statistics Authority (PSA).

National Statistician Dennis Mapa said in a press briefing yesterday that headline inflation – the rate of increase in consumer prices – rose to two percent in January this year from 1.8 percent in December 2025.

The latest inflation print is the highest since the 2.1 percent in February last year.

However, the January inflation was lower compared to the 2.9 percent recorded in the same month last year.

The January inflation is within the Bangko Sentral ng Pilipinas (BSP)’s 1.4 to 2.2 percent forecast for last month.

It is also at the low end of the government’s two to four percent inflation target for the year.

Mapa attributed the uptrend in inflation mainly to the faster increment in the housing, water, electricity, gas and other fuels index at 3.3 percent in January this year from the previous month’s 2.5 percent.

Restaurants and accommodation services also contributed to the faster overall inflation, posting a four-percent increase in January from 2.4 percent in the previous month.

Inflation for food alone eased to 0.7 percent from 1.2 percent in the previous month.

“We see the easing of food inflation beneficial for Filipino households, particularly for lower-income families where food accounts for a larger share of expenditures,” Department of Economy, Planning and Development (DEPDev) Undersecretary Rosemarie Edillon said.

The BSP said the inflation outlook remains benign, while inflation expectations remain well anchored.

While the outlook for domestic economic activity has weakened and business sentiment continued to decline due to governance issues and global trade policy uncertainty, the BSP said domestic demand is expected to recover as the effects of monetary policy easing kick in and public spending improves.

“The Monetary Board sees the monetary policy easing cycle as nearing its end. Any further easing is likely to be limited and guided by incoming data,” the BSP said.

The Monetary Board is set to hold its first policy meeting on Feb. 19.

Commenting on the data, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the January inflation is relatively benign and could still support monetary easing measures such as the reduction in local policy rates and banks’ reserve requirement ratio to boost economic growth.

“Inflation/CPI (consumer price index)  could normalize and average at three percent levels for the coming months of 2026 amid easing base/denominator effects,” he said.

Amid higher inflation in utilities and restaurants and accommodation services, the DEPDev said the government is implementing measures to address issues in the energy sector.