The Philippines' inflation rate remained at 2.9% in January 2025, consistent with December 2024, according to the Philippine Statistics Authority (PSA). This rate aligns with the government's target range of 2% to 4%, with the 2024 annual average at 3.2%.
Tomato prices experienced the highest inflation, reaching 155.7% in January 2025. Conversely, rice prices decreased by 2.3%, attributed to a high baseline and previous double-digit inflation rates in 2024.
President Marcos emphasized the need for a food security emergency, citing ineffective tariff cuts on rice prices. The government faces delays in declaring this emergency, affecting rice buffer stocks in National Food Authority warehouses.
Inflation in Metro Manila slowed to 2.1%, while other regions remained at 2.9%. Cagayan Valley recorded the highest regional inflation at 5.1%, with Soccsksargen at 1.1%.
The National Economic and Development Authority (NEDA) highlighted efforts to stabilize prices through ASF vaccinations and flood control infrastructure. NEDA Secretary Arsenio Balisacan stated, "Resiliency of our agri-food systems will be one of our most important goals."
The Bangko Sentral ng Pilipinas (BSP) anticipates potential inflation acceleration due to transportation and electricity price hikes but expects these pressures to be partly offset by lower rice and electricity costs. The central bank will address inflation risks in its upcoming monetary policy meeting.
Bank of the Philippine Islands economist Emilio Neri Jr. noted the January data's potential impact on policy rates, considering economic growth and external influences like U.S. monetary policy.
Source: Rappler