Philippine inflation slows to 2.1% in February 2025 — PSA

March 5, 2025 | 10:37am

MANILA, Philippines — The Philippines’ inflation rate eased to 2.1% in February 2025, the Philippine Statistics Authority (PSA) said on Wednesday, March 5. 

This marks a 0.8-point decline from January 2025’s 2.9%. The national average inflation rate for January to February 2025 now stands at 2.5%.

February 2025’s inflation rate is also lower than the same period last year.

The current headline inflation is primarily driven by food and non-alcoholic beverages, which is 1.0 point of February's 2.1% (47.0% share). Meanwhile, housing, water, electricity, gas and other fuels contributed a 0.3 point (16.4%), and restaurants and accommodation services contributed a 0.3 point (12.9%).  

The PSA said that the lower inflation rate is caused by the slower increase of food and beverage prices. Food and beverage inflation was recorded at 2.6% in February 2025 from 3.8% in the previous month. 

There was also a decrease in housing, water, electricity, gas and other fuels from 2.2% in January 2025 down to 1.6%. 

The PSA also recorded the following commodity group decreases from January 2025 to February 2025: 

• Alcoholic beverages and tobacco: 3.4% (down from 3.5%) 
• Clothing and footwear: 2.1% (down from 2.3%) 
• Furnishings, household equipment and routine household maintenance: 2.3% (down from 2.6%)
• Health: 2.3% (down from 2.5%) 
• Restaurants and accommodation services: 2.8% (down from 3.2%) 
• Personal care, and miscellaneous goods and services: 2.6% (down from 2.8%) 

However, there were higher inflation rates in information and communication, which slightly increased to 0.3% in February 2025 from 0.2% in the previous month. 

Core inflation, which does not account for the more volatile commodities such as food and energy, fell to 2.4% in February 2025 from 2.6% in the previous month. 

In the National Capital Region, inflation dropped from 2.8% in January 2025 to 2.3% in February 2025. Meanwhile, areas outside Metro Manila saw a slower inflation rate of 2.0% in February 2025, down from 2.9% in January this year.

Food inflation 

While food inflation remains the primary driver of the country’s overall inflation, several subgroups experienced slower inflation in February 2025. The PSA reported the following month-on-month decreases:

• Vegetables, tubers, plantains, cooking bananas and pulses: 7.1% (down from 21.1%) 
• Rice: -4.9% (down from -2.3%)
• Corn, 0.7 percent from 3.6 percent; 
• Flour, bread and other bakery products, pasta products, and other cereals: 1.4% (down from 1.7%)  
• Fish and other seafood: 2.9% (down from 3.3%) 
• Ready-made food and other food products not elsewhere classified: 3.7% (down from 4.0%) 

However, the PSA also recorded the following month-on-month increases in several food groups:

• Meat and other parts of slaughtered land animals: 8.8% (up from 6.4 percent)
• Milk, other dairy products and eggs: 2.7% (up from 2.4%) 
• Oils and fats: 3.5% (up from 2.2%) 
• Fruits and nuts: 6.9% (up from 6.5%)

While the National Economic and Development Authority (NEDA) welcomed the lower inflation rate, it also said that the government must continuously exert efforts to decrease inflation. 

"The downward trend in headline inflation indicates that our efforts to combat inflationary pressures are working. However, we will not be complacent in addressing causes of commodity price increases, particularly for food, to help uplift the lives of poor and vulnerable Filipino families, especially" NEDA Secretary Arsenio Balisacan said in a statement. 

The NEDA chief said that the government is already preparing for possible typhoons this year. 

A string of typhoons devastated the country in 2024. The government has attributed higher inflation and a slower economic growth to these storms.