The Philippines’ headline inflation rate increased to 1.7 percent in September 2025 from 1.5 percent in August on the back of higher costs for transport and food, according to data released by the Philippine Statistics Authority (PSA) on Tuesday.
The September figure brought the national average inflation from January to September 2025 to 1.7 percent. In September 2024, the inflation rate was 1.9 percent.
Department of Economy, Planning and Development (DEPDev) Secretary Arsenio Balisacan said the September figures point to manageable price movements despite recent supply-side pressures.
“The slight uptick in inflation underscores the sensitivity of domestic food prices to supply disruptions. We are working closely with various agencies to stabilize supply, keep essential goods affordable, and safeguard household welfare,” Balisacan said.
Balisacan said the government remains committed to securing adequate food supplies and tempering price pressures. To this end, imports of select vegetables such as carrots, onions and broccoli will be allowed as part of stabilization measures, he said.
The upward trend in overall inflation was partly due to the transport index, which saw an annual increase of 1.0 percent in September 2025, reversing an annual decline of 0.3 percent in August 2025.
The index for food and non-alcoholic beverages also contributed to the uptrend, increasing at a faster annual pace of 1.0 percent in September 2025 from 0.9 percent the previous month. Restaurants and accommodation services also saw a higher year-on-year increase at 2.4 percent, up from 2.3 percent in August 2025.
Vegetable inflation rose sharply to 19.4 percent from 10.0 percent, making it the single largest contributor to overall inflation. Successive weather disturbances in key production areas have driven these price increases. By contrast, meat inflation eased to 6.0 percent from 7.1 percent as both chicken and pork prices moderated.
Rice continued to record deflation at -16.9 percent from -17.0 percent, reflecting lower farmgate and international prices despite reduced import arrivals following the rice import ban.
Lower inflation rates were noted in alcoholic beverages and tobacco (4.1 percent from 4.2 percent), health (2.8 percent from 2.9 percent) and personal care and miscellaneous goods and services (2.4 percent from 2.5 percent).
Housing, water, electricity, gas and other fuels was the top contributor to the overall inflation rate in September 2025 with a 26.2 percent share, followed by food and non-alcoholic beverages with a 23.1 percent share. Restaurants and accommodation services accounted for a 14.1 percent share.
Food inflation at the national level recorded a faster annual hike of 0.8 percent in September 2025 from 0.6 percent the previous month, led by a 19.40 percent year-on-year increase in vegetables, tubers, plantains, cooking bananas and pulses, up sharply from 10.0 percent in August 2025.
Core inflation, which excludes selected food and energy items, slowed down to 2.6 percent in September 2025 from 2.7 percent in August 2025.
Inflation in the National Capital Region (NCR) moved at a slower pace in September 2025 at 2.7 percent, down from 2.9 percent in the previous month. Inflation in areas outside NCR (AONCR) increased to 1.5 percent in September 2025 from 1.1 percent in August 2025, on faster annual increases in food and non-alcoholic beverages and a rise in the transport index.
The government is intensifying efforts to ensure the stability of supply and prices of basic commodities amid persistent weather disturbances, domestic challenges and global headwinds, according to DEPDev.
“The Department of Agriculture will also establish food corridors to minimize supply disruptions. These will feature greenhouses, storage, and post-harvest facilities that can strengthen the resilience of our food systems,” said Balisacan.
Balisacan said that on rice prices, the government is pursuing long-term policy measures aimed at balancing three key goals: ensuring fair income for farmers, keeping rice affordable for consumers, and maintaining macroeconomic stability.
“What is critical is a calibrated approach that addresses the needs of both farmers and consumers while supporting the economy’s rapid, sustained and inclusive growth,” he said.
Balisacan cited the importance of boosting productivity and competitiveness in the rice sector.
“This requires addressing constraints from fragmented farmlands, investing in research and modern technologies, improving post-harvest and marketing systems, and expanding farmers’ access to credit, insurance, and institutional support. These steps will help farmers better adapt to market shifts and climate risks,” he said.
