MANILA — The administration of President Ferdinand R. Marcos Jr. said it has protected the country’s poorest households by keeping inflation low while sustaining economic growth in 2025.

Inflation, as measured by the Consumer Price Index (CPI), declined to 1.6 percent from January to November 2025, down from 3.4 percent in 2024. The figure marks a continued slowdown from 5.8 percent in 2022 and 6.0 percent in 2023, when Mr. Marcos assumed office.

The administration said the sustained easing of inflation reflects coordinated government measures to stabilize prices, ensure food supply, and protect household purchasing power, particularly for rice, which accounts for the largest share of spending among low-income families.

“To put this in perspective, a 6% inflation rate means that your PHP 100 can buy only about PHP 94 worth of goods and services. But with inflation down to just 1.6% in 2025, that same PHP 100 can now buy about PHP 98.4 worth of goods and services,” Executive Secretary Ralph G. Recto said.

“Kaya napakahalaga nito para sa bawat pamilyang Pilipino, lalo na ang mga mahihirap. Kapag mababa ang inflation, napapanatili natin na abot-kaya ang mga pangunahing bilihin, lalo na ang pagkain,” he added.

Rice prices have continued to improve, with the Department of Agriculture, acting on the President’s directive, delivering on its commitment to reduce rice prices to PHP 20 per kilo, or about half the average price recorded in 2022.

As a result, inflation for the bottom 30 percent income households fell to negative 0.2 percent in November 2025, marking the sixth consecutive month of contraction, according to the administration.

S&P Global Ratings recently reaffirmed the Philippines’ ‘BBB+’ high investment-grade credit rating with a Positive Outlook, citing the country’s low and stable inflation environment as a key strength.

The administration said lower prices, combined with a strong labor market, are expected to boost domestic demand and support economic growth. Easing inflation also gives the Bangko Sentral ng Pilipinas greater room to recalibrate interest rates, which could further support household spending and overall economic activity.

Investment prospects remain strong as the economic team continues to streamline regulations to attract private sector participation, with new initiatives and investment opportunities, particularly in agriculture, expected to be announced.

Multilateral institutions have projected steady growth for the Philippine economy in 2025. The Asian Development Bank forecasts a 5 percent expansion, while the World Bank and the International Monetary Fund project 5.1 percent growth.

These projections exceed the IMF’s 1.6 percent average growth outlook for advanced economies, including the United States at 2.0 percent, Japan at 1.1 percent, and the Euro area at 1.2 percent. The Philippines’ projected growth also surpasses the 4.2 percent average for ASEAN-5 economies, ranking second behind Vietnam’s 6.5 percent and ahead of Indonesia, Malaysia, Singapore, and Thailand.

By 2026, the IMF projects the Philippines to be the fastest-growing economy in ASEAN, tied with Vietnam at 5.6 percent growth.