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Inflation At 1.8% In December 2025 As Prices Edge Up
Photo credit: DA
Prices in the Philippines ticked slightly higher toward the end of 2025, but inflation for the entire year still stayed relatively low, according to the Philippine Statistics Authority (PSA).
The PSA reported that headline inflation climbed to 1.8 percent in December 2025, up from 1.5 percent in November. A year earlier, in December 2024, inflation was higher at 2.9 percent.
The slight increase was mainly driven by faster price movements in food and non-alcoholic beverages, which grew by 1.4 percent compared to just 0.1 percent the previous month. Clothing and footwear also saw quicker price increases, rising 2.2 percent from 1.8 percent in November.
Despite these increases, several essential items actually eased, helping prevent a sharper rise in prices. Slower inflation was recorded in alcoholic beverages and tobacco, housing and utilities, household furnishings, transport, recreation and culture, restaurants and accommodation services, and personal care items.
Food inflation also picked up to 1.2 percent in December after recording a decline in November. That figure, however, remained lower than the 3.5 percent recorded in December 2024. Rice prices fell at a slower pace, while vegetables, fish, fruits and ready-to-eat food items posted faster increases. Meat, dairy and sugar either rose more slowly or declined.
For the full year, inflation averaged 1.7 percent — significantly lower than the 3.2 percent annual average in 2024. Officials said the drop was largely due to more stable food prices and easing costs in several consumer categories. Transport even recorded a small decline for the year.
Core inflation, which removes volatile food and energy prices, remained steady at 2.4 percent in December. This was lower than the 2.8 percent recorded in December 2024.
Across regions, inflation moved differently. In the National Capital Region, inflation slowed to 2.3 percent in December from 2.8 percent the month before. Outside NCR, inflation rose to 1.7 percent from 1.2 percent. Central Visayas continued to record the highest inflation, while BARMM posted negative inflation, meaning prices there were cheaper compared to last year.
In short, prices did edge up at the end of 2025 — mainly because of food — but overall inflation for the year remained manageable and lower than the previous year.
The PSA reported that headline inflation climbed to 1.8 percent in December 2025, up from 1.5 percent in November. A year earlier, in December 2024, inflation was higher at 2.9 percent.
The slight increase was mainly driven by faster price movements in food and non-alcoholic beverages, which grew by 1.4 percent compared to just 0.1 percent the previous month. Clothing and footwear also saw quicker price increases, rising 2.2 percent from 1.8 percent in November.
Despite these increases, several essential items actually eased, helping prevent a sharper rise in prices. Slower inflation was recorded in alcoholic beverages and tobacco, housing and utilities, household furnishings, transport, recreation and culture, restaurants and accommodation services, and personal care items.
Food inflation also picked up to 1.2 percent in December after recording a decline in November. That figure, however, remained lower than the 3.5 percent recorded in December 2024. Rice prices fell at a slower pace, while vegetables, fish, fruits and ready-to-eat food items posted faster increases. Meat, dairy and sugar either rose more slowly or declined.
For the full year, inflation averaged 1.7 percent — significantly lower than the 3.2 percent annual average in 2024. Officials said the drop was largely due to more stable food prices and easing costs in several consumer categories. Transport even recorded a small decline for the year.
Core inflation, which removes volatile food and energy prices, remained steady at 2.4 percent in December. This was lower than the 2.8 percent recorded in December 2024.
Across regions, inflation moved differently. In the National Capital Region, inflation slowed to 2.3 percent in December from 2.8 percent the month before. Outside NCR, inflation rose to 1.7 percent from 1.2 percent. Central Visayas continued to record the highest inflation, while BARMM posted negative inflation, meaning prices there were cheaper compared to last year.
In short, prices did edge up at the end of 2025 — mainly because of food — but overall inflation for the year remained manageable and lower than the previous year.
Jan 6, 2026
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