MANILA, Philippines — The country’s headline inflation remained steady at 2.9 percent in January 2025, the Philippine Statistics Authority (PSA) reported Wednesday.

The inflation rate for January 2025 remains unchanged from the 2.9 percent recorded in December 2024. In comparison, January 2024 saw a slightly lower rate of 2.8 percent.

Rising costs in key commodities

The PSA said in a briefing that several sectors saw a faster rise in prices during January 2025. Food and non-alcoholic beverages recorded a 3.8 percent increase, up from 3.4 percent in December 2024. 

Alcoholic beverages and tobacco saw a similar rise of 3.5 percent, up from 3.1 percent, while transport costs increased by 1.1 percent, slightly higher than the 0.9 percent increase in December.

Financial services, however, showed no inflation growth, with rates holding steady at 0 percent compared to a 0.6 percent decrease in December 2024, it said.

Declining inflation in other sectors

At the same time, some sectors saw lower inflation rates in January 2025. Clothing and footwear prices increased by 2.3 percent, slightly lower than the 2.4 percent rise in December. 

Housing, water, electricity, and other fuels also saw a decrease to 2.2 percent, down from 2.9 percent. 

Other sectors, including furnishings, recreation, education services, and restaurants, also recorded slower inflation compared to the previous month.

Main contributors to January inflation

Food and non-alcoholic beverages were the biggest contributors to the January 2025 inflation, accounting for 50.3 percent of the overall inflation at 1.5 percentage points. 

Housing, utilities, and restaurants also played a significant role, contributing 16.5 percent (0.5 percentage point) and 10.8 percent (0.3 percentage point), respectively.

Food inflation upticks

PSA likewise reported that food inflation rose to 4.0 percent in January 2025, up from 3.5 percent in December. 

The increase in food prices was mainly driven by higher costs in vegetables, tubers, plantains, cooking bananas, and pulses, which saw a significant rise of 21.1 percent. 

Fish and seafood also experienced a 3.3 percent increase, up from 1.0 percent in the previous month, while meat prices rose by 6.4 percent from 4.9 percent.

Additionally, oils and fats saw a faster annual growth of 2.2 percent, and sugar, confectionery, and desserts showed a smaller year-on-year decline of 2.3 percent, compared to 2.7 percent in December 2024.

In January 2025, food inflation contributed 47.7 percent (1.4 percentage points) to the overall inflation. 

The top three food groups driving this increase were:

1. Vegetables, tubers, plantains, cooking bananas, and pulses (46.5 percent, 1.9 percentage points)
2. Meat and other slaughtered land animals (32.4 percent, 1.3 percentage points)
3. Fish and seafood (14.7 percent, 0.6 percentage points)

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