Key points:
- Philippines inflation rose to 2.0% in January 2026, up from 1.8% in December 2025 but lower than 2.9% a year earlier.
- Housing, water, electricity, gas, and fuel costs were the biggest drivers of the inflation increase, rising 3.3%.
- Central Visayas recorded the highest regional inflation at 5.6%, while Cagayan Valley saw a slight decline.
Inflation in the Philippines rose slightly in January 2026, mainly driven by higher housing and utility costs, according to the latest data from the Philippine Statistics Authority (PSA).
The country’s headline inflation rate increased to 2.0% in January 2026, up from 1.8% in December 2025, although it remained lower than the 2.9% recorded in January 2025.
Housing and utilities push prices higher
The PSA reported that the housing, water, electricity, gas and other fuels category was the largest contributor to the rise in overall inflation.
Prices in this sector grew 3.3% in January, up from 2.5% in December 2025. This category accounted for the largest share of overall inflation, contributing about 33.5% of the total inflation rate.
Restaurants and accommodation services also contributed to the increase in inflation. Prices in this sector rose 4.0% in January, compared with 2.4% in the previous month.
Food inflation slows
Despite the rise in overall inflation, food price growth slowed significantly in January. Food inflation dropped to 0.7%, compared with 1.2% in December 2025.
The slowdown was largely due to slower price increases for vegetables, meat, fish, and other food products. In particular, the price growth of vegetables fell sharply from 11.6% in December to 3.3% in January, helping ease pressure on overall food costs.
Food and non-alcoholic beverages still remained a key contributor to inflation, accounting for 22.2% of the overall inflation rate.
Core inflation increases
Meanwhile, core inflation, which excludes volatile food and energy prices, rose to 2.8% in January 2026 from 2.4% in December 2025.
The increase in core inflation suggests that underlying price pressures in the economy may still be present even as food price growth slowed.
Regional trends
Inflation trends also varied across regions. In Metro Manila (National Capital Region), inflation slowed to 1.9% in January 2026, compared with 2.3% in December 2025.
In contrast, areas outside Metro Manila recorded a slightly higher inflation rate of 2.0%, up from 1.7% in the previous month.
Among the regions, Central Visayas (Region VII) recorded the highest inflation rate at 5.6%, while Cagayan Valley (Region II) experienced a slight decline in inflation at -0.1%.
Overall, inflation in the Philippines remains relatively moderate at 2.0%, supported by easing food price growth. However, rising costs related to housing, utilities, and services continue to put pressure on household spending.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri
