Philippine inflation holds steady at 2.9% in January

Philippine inflation remained flat at 2.9% in January 2025, matching the December 2024 rate, according to the Philippine Statistics Authority (PSA).

This rate aligns with the Bangko Sentral ng Pilipinas' (BSP) forecast range of 2.5% to 3.3% and the government's target of 2% to 4%.

The food and nonalcoholic beverage index quickened to 3.8% in January, with food inflation alone accelerating to 4%, though lower utility costs offered some offset.

Core inflation slowed to 2.6% in January from 2.8% in December, excluding volatile food and fuel prices.

The BSP noted that the results are consistent with their assessment that inflation will remain anchored to the target range, but warned of upside risks due to external uncertainties.

Despite inflation being within the target range, the high cost of basic goods like food and electricity is testing Filipino consumers, with some resorting to informal loans to purchase food.