Inflation steadies at 2.9% in January

February 6, 2025 | 12:00am

MANILA, Philippines —  The country’s inflation, or the rate of increase in average prices of consumer goods and services, remained at 2.9 percent in January, the same level as the previous month as food price increases were offset by slower upticks in costs of utilities and restaurant and accommodation services, according to the Philippine Statistics Authority (PSA).

In a press briefing, National Statistician Dennis Mapa said while inflation in January was unchanged from the previous month, it was slightly higher than the 2.8 percent clocked in the same month last year.

Last month’s inflation print was within the Bangko Sentral ng Pilipinas’ forecast range of 2.5 to 3.3 percent.

Mapa cited food and non-alcoholic beverages as the main contributor to the January inflation, with the commodity group posting a faster increase of 3.8 percent in January from the previous month’s 3.4 percent.

Inflation for food alone rose to four percent in January from 3.5 percent a month ago.

Rice, the country’s staple food, however, posted a deflation of 2.3 percent in January from a 0.8-percent increase in December last year as prices of all rice varieties tracked by the PSA declined.

In particular, the average price of regular milled rice went down to P48.25 per kilo in January from P48.81 per kilo in December last year and P49.65 per kilo in January 2024.

For well-milled rice, the average price decreased to P54.14 per kilo in January from P54.38 per kilo in December last year and P54.91 per kilo in January last year.

As for special rice, the average price slid to P63.13 per kilo in January from P63.42 per kilo in December last year and P63.90 per kilo in January 2024.

Finance Secretary Ralph Recto said the latest inflation figure is a “strong indicator” of the government’s success in stabilizing prices.

“This is a strong indicator of the government’s commitment to keeping prices stable and signals that the Bangko Sentral ng Pilipinas has more flexibility to further reduce interest rates,” Recto said, adding that “the government will remain proactive in implementing interventions to ensure stable and affordable rice price.”

“Lower interest rates mean cheaper borrowing costs for our consumers and businesses. This will provide greater purchasing power for our people and stronger momentum for investments and growth,” he said.

Mapa, however, said the uptrend in food inflation last month was driven by  vegetables, tubers, plantains, cooking bananas and pulses, which had a faster increase of 21.1 percent in January from 14.2 percent in December.

Inflation for tomatoes, in particular, surged to 155.7 percent in January from 120.8 percent a month ago.

Mapa attributed the increase in vegetable prices to the impact of the series of typhoons that hit the country in the latter part of 2024.

Also contributing to the higher food inflation last month were the faster increases in fish and other seafood at 3.3 percent in January from one percent in the previous month, as well as in meat and other parts of slaughtered land animals at 6.4 percent in January  from 4.9 percent in December last year.

Slower inflation was seen in housing, water, electricity, gas and fuels, at 2.2 percent in January from 2.9 percent in the previous month, as well as in restaurants and accommodation services (3.2 percent from 3.8 percent).

Core inflation, which strips off selected food and energy items, slowed to 2.6 percent in January  from 2.8 percent in December 2024 and 3.8 percent in January last year.

“Based on the current trend of prices, our expectation is that based on the computation, at least until July, we will expect negative inflation for rice,” Mapa said.

While rice is expected to continue to have negative inflation, Mapa said risks are seen in three food commodity groups: vegetables, especially tomatoes, as well as meat and fish.

National Economic and Development Authority Secretary Arsenio Balisacan said  that reducing food inflation remains a priority for the government.

The Philippine Atmospheric, Geophysical and Astronomical Services Administration has issued an early warning to agencies to remain vigilant as four to 10 tropical cyclones are expected to develop from this month until July.

“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.

The government is aiming to keep inflation within two to four percent this year.

“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,” Balisacan said. – Keisha Ta-asan