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January Inflation Rises To 2% As Power And Housing Costs Climb
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Inflation in the Philippines picked up slightly in January, rising to 2 percent from 1.8 percent in December 2025, as prices of electricity, housing, and other fuels increased at a faster pace. The rise in fuel-related costs was partly blamed on slower price drops in liquified petroleum gas.

National Statistician Claire Dennis Mapa said during a briefing on Thursday that despite the increase, January’s inflation was still slower compared to the 2.9 percent recorded in January last year.

Core inflation — which excludes volatile items such as food and oil — also accelerated, climbing to 2.8 percent from 2.4 percent in December and 2.6 percent in January 2025.

The January figure fell within the Bangko Sentral ng Pilipinas’ forecast range of 1.4 percent to 2.2 percent and remained near the lower end of the government’s 2 to 4 percent inflation target.

For the Department of Economy, Planning, and Development, one positive development was the easing of food prices. DEPDev Officer-in-Charge Undersecretary Rosemarie Edillon noted that food inflation slowed to 0.7 percent in January, down from 1.2 percent in December, which she said helped ease pressure on households.

“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,” Edillon said.

The government’s inflation target for this year and next remains at 2 to 4 percent, and authorities said steps are in place to maintain adequate supply of basic food items such as rice and meat to keep price increases manageable.

Edillon also pointed out that non-food inflation moved faster, particularly in housing rentals, which rose to 2.8 percent from 2.4 percent in December, and electricity, which jumped to 6.5 percent from 4.1 percent.

To help address higher power costs, she cited programs of the Department of Energy, including net metering, which allows consumers with renewable energy systems like solar panels to send excess electricity to the grid in exchange for bill credits from their distribution utilities.

Meanwhile, the Energy Regulatory Commission has coordinated with distribution utilities and the Department of Social Welfare and Development to automatically enroll eligible Pantawid Pamilyang Pilipino Program beneficiaries in the Lifeline Rate Subsidy Program, provided their monthly electricity consumption does not exceed 50 kilowatt hours.

“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 added.

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