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Inflation In The Philippines Slows Down In February 2025
Photo credit: DA
Filipinos can breathe a little easier as the country’s headline inflation rate cooled down to 2.1% in February 2025, a drop from 2.9% in January 2025. If we compare it to last year’s 3.4% inflation rate in February 2024, it’s clear that prices are stabilizing.

Why Is Inflation Slowing Down?

The biggest reason? Cheaper food and drinks. The inflation rate for food and non-alcoholic beverages slowed to 2.6% from 3.8% in January. That means essentials like rice, vegetables, and bread are seeing smaller price increases—or even price drops.

Other factors also contributed to the lower inflation:
• Housing, water, electricity, gas, and other fuels saw a smaller increase of 1.6% (down from 2.2%).
• Transport costs actually went down by 0.2%—a big shift from the 1.1% increase in January.

Even non-essentials like clothing, household items, and personal care products had slower price hikes.

Food Prices: The Big Picture

Food inflation cooled down to 2.6%, compared to 4.0% last month and 4.8% a year ago. This was mainly due to:
• Vegetables, tubers, and plantains seeing a major slowdown at 7.1% (compared to a shocking 21.1% in January).
• Rice prices dropping further, with a 4.9% decline in February.

On the other hand, some items saw slight increases, including:
• Meat prices, which rose by 8.8% from 6.4%.
• Milk, dairy, and eggs, which ticked up to 2.7% from 2.4%.

What’s Happening in Metro Manila and the Provinces?

In Metro Manila (NCR), inflation slowed to 2.3% (from 2.8% in January). Food and beverage prices were the main reason, along with transport costs dropping.

In areas outside NCR, inflation was even lower at 2.0% (from 2.9% in January). Most regions saw prices stabilize, except Central Visayas (Region VII), which maintained its previous inflation rate.

What This Means for You

Lower inflation means your purchasing power is stronger, and price increases are more manageable. If this trend continues, Filipinos can expect a bit more breathing room when it comes to household expenses.

Of course, we’ll have to keep an eye on fuel prices, global supply chains, and unexpected economic shifts. But for now—enjoy the relief, and let’s hope this downward trend continues!

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