The Central Bank of the Philippines reported that year-on-year headline inflation rose to 1.8% in December from 1.5% in November, staying within its 1.2% to 2.0% forecast range for the month. Average headline inflation for 2025 came in at 1.7%, below the government’s inflation target of 3.0% ± 1.0 percentage point, while inflation for the bottom 30% income households was 1.1% in December and 0.3% for 2025. The central bank attributed the December uptick mainly to higher food prices, particularly vegetables, corn, and fish and other seafood, linked to weather-related disruptions, reduced supply from lower import arrivals, the closed fishing season, and seasonal holiday demand. Rice prices continued to decline in December but at a slower pace; the full-year outturn also reflected lower prices for key commodities such as rice and petroleum products and easing demand-side pressures as core inflation moderated. On a seasonally adjusted month-on-month basis, headline inflation increased from 0.0% in November to 0.7% in December, while core inflation was unchanged at 2.4%. The central bank characterised the inflation outlook as benign, with inflation expected to move back toward the target range in 2026 and 2027, and said it will continue to monitor domestic and external developments affecting inflation and growth in line with a data-dependent monetary policy approach.
Central Bank of the Philippines 2026-01-05
Central Bank of the Philippines reports December inflation at 1.8% and 2025 average at 1.7% below target
The Central Bank of the Philippines reported a rise in year-on-year headline inflation to 1.8% in December, driven by higher food prices, while average inflation for 2025 was 1.7%, below the government's target. The bank expects inflation to return to the target range in 2026 and 2027 and will maintain a data-dependent monetary policy approach.