Inflation rises to 1.8% in December 2025

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January 6, 2026 | 12:10pm

MANILA, Philippines — The inflation rate slightly picked up pace last December 2025, rising to 1.8% compared to the 1.5% rate in November 2025, according to the Philippine Statistics Authority (PSA) on Tuesday, January 6. 

This brings the year-to-date average headline inflation rate to 1.7%.  

The faster overall inflation rate last December was due to an increase in food inflation, the PSA said. 

Heavily weighted food and non-alcoholic beverages rose to 1.4% in December 2025 from a mere 0.1% in November 2025. 

Food inflation rose despite rice inflation being in the negatives at -12.3%. The increase in food inflation was mainly driven by fish and other seafood (9.0%), vegetable and tubers (11.6%), and meat (3.0%).  

There was also a faster annual increase in clothing and footwear, which increased to 2.2% in December 2025 from 1.8% the previous month. 

Meanwhile, slower inflation rates were observed in the following commodity groups in December 2025 compared to the previous month: 

• Alcoholic beverages and tobacco (3.6% from 3.9%) 
• Housing, water, electricity, gas and other fuels (1.7% from 2.1%) 
• Transport (0.4% from 1.9%) 
• Restaurants and accommodation services (2.5% from 2.6%) 
• Personal care, and miscellaneous goods and services (2.3% from 2.4%) 

National Statistician and PSA Undersecretary Dennis Mapa said that inflation was worsened by natural calamities. There was also a holiday effect, he added.

In a statement, Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan said government measures were able to temper inflation rates within the government targets despite external headwinds. 

“Despite global headwinds and domestic challenges, the Philippine economy has remained resilient against inflationary pressures due to the government’s timely and targeted interventions. Building on this momentum, the government will continue to pursue prudent fiscal and monetary coordination and advance structural reforms to sustain the downward inflation trend and support inclusive growth in 2026 and beyond,” said Balisacan.