Inflation quickens to 13-month high

PHILIPPINE INFLATION accelerated to a 13-month high in February as rising costs for rice, fuel, electricity and other utilities added pressure on household budgets, the Philippine Statistics Authority said on Thursday.

- Katherine K. Chan

The consumer price index (CPI) picked up to 2.4% from 2% in January and 2.1% in February 2025. It was the fastest since January 2025, when inflation hit 2.9%.

February inflation fell within the Bangko Sentral ng Pilipinas' (BSP) 2.3%-3.1% forecast and matched the 2.4% median estimate in a BusinessWorld poll of 17 analysts.

February also marked the second straight month that inflation stayed within the central bank's 2%-4% target, bringing the two-month average inflation rate to 2.2%.

"Overall price conditions remain stable," Economy Secretary Arsenio M. Balisacan said in a statement. "However, we are mindful of recent geopolitical developments, which we are closely monitoring, along with domestic supply conditions of key commodities."

The peso's purchasing power remained at P0.76 for every P100 worth of goods and services in 2018, the same level recorded in January and the lowest since the base year was adopted.

National Statistician Claire Dennis S. Mapa said faster price increases in food and nonalcoholic beverages, housing and utilities and restaurants and accommodation services pushed inflation higher last month.

Inflation for food and nonalcoholic beverages accelerated to 1.8% from 1.1% in January, driven by faster price increases for vegetables, fish and seafood, as well as a slower decline in cereals and cereal products.

Inflation for restaurants and accommodation services also quickened to 4.4% from 4% a month earlier. Prices for restaurants, cafés and similar establishments rose 4.5% from 4.1% pace in January.

Core inflation, which strips out volatile food and fuel prices, edged up to 2.9% in February from 2.8% in January and 2.4% a year earlier. This was the fastest since June 2024.

ENERGY COSTS

Inflation for housing, water, electricity, gas and other fuels, which accounted for almost 30% of the headline CPI, rose to 3.5% in February from 3.3% a month earlier.