Philippine annual inflation quickened to 2.0 percent in January 2026 from 1.8 percent in December 2025, on the back of higher costs for utilities and dining out, the Philippine Statistics Authority (PSA) said Thursday.
The headline figure remained at the bottom end of the government’s 2.0 to 4.0 percent target range and was lower than the 2.9 percent recorded in January 2025.
The PSA said the uptrend was influenced by the housing, water, electricity, gas and other fuels index, which rose 3.3 percent in January from 2.5 percent in December.
The restaurants and accommodation services index also contributed to the faster pace, showing a year-on-year increase of 4.0 percent in January compared with 2.4 percent in the previous month.
Despite the increase of the headline inflation, food inflation eased to 0.7 percent in January 2026 from 1.2 percent in December 2025.
“We see the easing of food inflation beneficial for Filipino households, particularly for lower-income families where food accounts for a larger share of expenditures,” said Department of Economy, Planning and Development (DEPDev) Undersecretary Rosemarie Edillon, in her capacity as the agency’s officer in charge while Secretary Arsenio Balisacan is on official business abroad.
Core inflation, which strips out volatile food and energy items, rose to 2.8 percent in January from 2.4 percent in December.
“The uptrend in the overall inflation in January 2026 was primarily influenced by the faster annual increment in the housing, water, electricity, gas and other fuels index at 3.3 percent during the month from 2.5 percent in December 2025,” the PSA said.
The government is maintaining its 2 to 4 percent inflation targets for 2026 and 2027, while remaining vigilant against emerging upside risks, according to Edillon.
“We will continue building on this progress by sustaining efforts to support Filipino families’ purchasing power, alongside other reforms that strengthen resilience and promote long-term growth,” she said.
The downtrend in food inflation was largely led by the slower price increase in vegetables, fish and meat.
“Fewer areas were affected by African Swine Flu cases, while faster withdrawals from cold storage facilities helped temper both pork and chicken price increases,” said Edillon.
To address the quickening of non-food inflation, the government is implementing policy measures to address issues in the energy sector, according to DEPDev.
The Department of Energy is streamlining and strengthening the implementation of the Net Metering Program by enforcing time-bound local permitting, simplifying utility documentary requirements, and expanding consumer incentives.
The program allows consumers to install eligible renewable energy systems and export surplus electricity to the grid, helping lower electricity costs and support the energy transition.
The Energy Regulatory Commission (ERC) also adopted a uniform lifeline consumption threshold of 0-50 kWh, which grants qualified customers a 100-percent discount on applicable electricity charges.
The ERC also approved a uniform lifeline subsidy rate of P0.01/kWh to provide equitable discounts for marginalized and low-income households.
“Rest assured that we are exerting all efforts to strengthen food systems, improve climate resilience and enhance governance to further support price stability and help sustain economic momentum in the months ahead,” Edillon said.
