Central Bank of the Philippines reports January inflation rising to 2.0 percent within forecast range

The Central Bank of the Philippines published its January 2026 inflation update, reporting that year-on-year headline inflation increased to 2.0 percent from 1.8 percent in December 2025. The outturn was within the Bangko Sentral ng Pilipinas’ forecast range of 1.4 to 2.2 percent for the month and remained below the 3.0 percent full-year target, within the ±1.0 percentage point tolerance band. Non-food components, particularly housing, water, electricity, gas and other fuels, as well as restaurants and accommodation services, drove the pickup in headline inflation, while food inflation eased as price increases for vegetables, meat, and fish slowed. Inflation for households in the lowest 30 percent of the income distribution rose to 1.6 percent from 1.1 percent, seasonally adjusted month-on-month headline inflation slowed to 0.1 percent from 0.7 percent, and core inflation increased to 2.8 percent from 2.4 percent; the central bank continues to expect inflation to settle close to the 3 percent target in 2026 and 2027.