Headline inflation sharply fell to 2.1 percent in February 2025, down from 2.9 percent in the previous month and 3.4 percent in February last year, driven by the easing of rice prices among other heavily weighted items, the Philippine Statistics Authority (PSA) reported yesterday.
This is the lowest recorded since September 2024 at 1.9 percent.
PSA attributed the lower inflation in February to the slowdown in both food (2.6 percent from 4 percent) and non-food inflation (1.7 percent from 2.2 percent).
The year-to-date inflation average is 2.5 percent, well within the government’s 2 to 4 percent target.
In terms of consumer goods, rice prices declined for the second straight month amid the continuous effects of declining global prices, a reduction in rice import tariffs last year, and the impact of the food emergency declaration on taming the staple grain’s retail prices.
Deputy National Statistician and PSA Assistant Secretary Divina Gracia del Prado reported a year-on-year contraction in rice inflation of -4.9% last month, a steeper decline than the -2.3% deflation in January 2025.
Last month’s rice deflation of -4.9% was also the lowest for the grain staple since April 2020’s -5.7% print, she said.
“The government will sustain its efforts to keep inflation low and manageable to protect the purchasing power of Filipinos. As we expect six to 13 typhoons to develop from March to August 2025, the Department of Agriculture (DA) will implement the La Niña action plan to restore agricultural productive capacity in areas likely to be affected by continuous rainfall, flooding, and landslides,” NEDA Secretary Arsenio Balisacan said.
“The action plan includes water management, financial assistance and credit support, and a massive information campaign on La Niña,” he added.
Meanwhile, Finance Secretary Ralph Recto welcomed the sharp drop in inflation to 2.1% in February 2025, calling it a major win for lower-income households as it provides much-needed relief, especially on food items.
“This sustained downward trend confirms that our proactive measures to curb inflation are delivering results, especially on helping alleviate the burden on vulnerable sectors. But we will not allow ourselves to be complacent—we will continue to monitor whatever may bring about price increases, especially on food,” he said in a mixture of Filipino and English.
For his part, House Speaker Martin Romualdez lauded the continued drop in inflation, saying it reflects the success of President Marcos’ economic team in stabilizing prices and protecting the purchasing power of Filipinos.
“This is great news for every Filipino family. The continued drop in inflation – from 2.9 percent in January to 2.1 percent in February – proves that President Ferdinand R. Marcos Jr.’s economic team is getting the job done,” he said.
Romualdez emphasized that the administration has remained focused on ensuring food security and economic stability, with the House of Representatives actively supporting these efforts through legislative measures aimed at easing the cost of living.
February’s inflation rate is the lowest recorded since October 2024.
Notably, inflation for the bottom 30% income group further dropped to 1.5 percent for the month, well below the headline rate and down from 2.4 percent in January 2025.
Core inflation, which excludes volatile food and energy prices, also eased to 2.4 percent in February, creating room for potential monetary policy rate easing that would lower interest rates and provide cheaper borrowing costs for consumers and businesses. With Maricel V. Cruz