Price pressures edged higher at the close of the year as cost increases for essential food items fed into consumer prices, according to data released Tuesday by the Philippine Statistics Authority.
The headline inflation rate accelerated to 1.8 percent in December from 1.5 percent in November, landing above the median projection of economists surveyed by The Manila Times while still falling within the 1.2 to 2.0 percent range anticipated by the Bangko Sentral ng Pilipinas.
Despite the December uptick, average inflation for the full year settled at 1.7 percent, remaining below the government’s 2.0 to 4.0 percent target band and markedly lower than the 3.9 percent pace recorded in 2024.
Underlying price trends showed little movement at year-end. Core inflation—which strips out selected food and energy components—held steady at 2.4 percent in December, unchanged from the previous month and slower than the 2.8 percent level seen in December a year earlier.
On an annual basis, core inflation averaged 2.4 percent in 2025.
