PH inflation dips to 5-month low of 2.1% in Feb

The Philippines' inflation rate slowed to a five-month low of 2.1% in February 2025, down from 2.9% in January, according to the Philippine Statistics Authority (PSA).

This deceleration was primarily driven by slower price increases in food and non-alcoholic beverages, with food inflation easing to 2.6% from 3.8% in January.

Vegetable prices dropped significantly to 7.1% from 21.1%, and rice prices experienced a sharper deflation of 5% from 2.3%.

The February inflation rate is the lowest since September 2024 and is slightly below the Bangko Sentral ng Pilipinas' forecast range of 2.2% to 3%.

The average price growth in the first two months of the year was 2.5%, well within the official target of 2% to 4%.

This development comes as the central bank remains wary of global uncertainties, and it remains to be seen if it will spur another interest rate cut.