MANILA — Inflation rose slightly in December, mainly due to higher food prices, according to official data released on Tuesday, January 6.

Consumer prices increased by 1.8% year-on-year in December, up from 1.5% in November, but remained within the Bangko Sentral ng Pilipinas’ (BSP) forecast range of 1.2% to 2% for the month.

For the full year 2025, inflation averaged 1.7%, significantly lower than 3.2% in 2024 and below the central bank’s target range of 2% to 4%, indicating that price increases remained generally subdued throughout the year.

The December uptick was largely driven by a 1.4% rise in food and beverage prices. Although rice prices dropped sharply by 12.3%, increases in the cost of fish and seafood (9.0%), vegetables and tubers (11.6%), and meat (3.0%) pushed overall food prices higher.

Clothing and footwear prices also edged up, rising from 1.8% in November to 2.2% in December.

Conversely, price increases eased in several categories:

• Alcohol and tobacco: 3.6% (down from 3.9%)
• Housing, water, electricity, and gas: 1.7% (down from 2.1%)
• Transport: 0.4% (down from 1.9%)
• Restaurants and hotels: 2.5% (down from 2.6%)
• Personal care and other goods: 2.3% (down from 2.4%)

National Statistician Dennis Mapa noted that natural disasters and holiday demand contributed to the price increase.

In a statement, Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan said government measures had helped keep inflation within target despite both domestic and global challenges.

“Despite global headwinds and domestic challenges, the Philippine economy has remained resilient against inflationary pressures due to the government’s timely and targeted interventions,” Balisacan said.

He added that authorities would continue coordinating fiscal and monetary policies and advancing structural reforms to support inclusive growth in 2026 and beyond.

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