Table A. Year-on-Year Inflation Rates, All Items 
In Percent 
(2018=100)

A. Philippines                              

1. Headline Inflation

The Philippines’ headline inflation or overall inflation eased to 2.1 percent in February 2025 from 2.9 percent in January 2025. This brings the national average inflation from January to February 2025 to 2.5 percent. In February 2024, the inflation rate was higher at 3.4 percent. (Figure 1, and Tables A, B, 5, and 14) 

1.1 Main Drivers to the Downward Trend of the Headline Inflation

The downtrend in the overall inflation in February 2025 was primarily brought about by the slower annual increment of food and non-alcoholic beverages at 2.6 percent in February 2025 from 3.8 percent in the previous month. Also contributing to the downtrend was housing, water, electricity, gas and other fuels with a slower annual increase of 1.6 percent during the month from 2.2 percent in January 2025. In addition, the transport recorded an annual decline of 0.2 percent in February 2025 from a 1.1 percent annual increase in the previous month.

Moreover, lower annual increments were noted in the indices of the following commodity groups during the month: 

a. Alcoholic beverages and tobacco, 3.4 percent from 3.5 percent; 
b. Clothing and footwear, 2.1 percent from 2.3 percent; 
c. Furnishings, household equipment and routine household maintenance, 2.3 percent from 2.6 percent; 
d. Health, 2.3 percent from 2.5 percent; 
e. Restaurants and accommodation services, 2.8 percent from 3.2 percent; and 
f.  Personal care, and miscellaneous goods and services, 2.6 percent from 2.8 percent. 

On the contrary, higher annual increase was observed in the index of information and communication at 0.3 percent in February 2025 from 0.2 percent in the previous month. The indices of the rest of the commodity groups retained their respective previous month’s annual rates. (Tables 5 and 6) 

1.2 Main Contributors to the Headline Inflation 

The top three commodity groups contributing to the February_2025 overall inflation were the following: 

a. Food and non-alcoholic beverages with 47.0 percent share or 1.0 percentage point; 
b. Housing, water, electricity, gas and other fuels with 16.4 percent share or 0.3 percentage point; and 
c. Restaurants and accommodation services with 12.9 percent share or 0.3 percentage point. 

2. Food Inflation

Food inflation at the national level eased to 2.6 percent in February 2025 from 4.0 percent in the previous month. In February 2024, food inflation was higher at 4.8 percent. (Table 9) 

2.1 Main Drivers to the Downward Trend of Food Inflation

The deceleration of food inflation in February 2025 was primarily brought about by the slower inflation rate of vegetables, tubers, plantains, cooking bananas and pulses at 7.1 percent during the month from 21.1 percent in January 2025. This was followed by the faster year-on-year decline of rice at 4.9 percent during the month from 2.3 percent annual decrease in January 2025. 

In addition, lower inflation rates during the month were noted in the indices of the following food items:  

a. Corn, 0.7 percent from 3.6 percent; 
b. Flour, bread and other bakery products, pasta products, and other cereals, 1.4 percent from 1.7 percent; 
c. Fish and other seafood, 2.9 percent from 3.3 percent; and 
d. Ready-made food and other food products not elsewhere classified, 3.7 percent from 4.0 percent. 

On the contrary, higher annual growth rates during the month were observed in the indices of the following food groups: 

a. Meat and other parts of slaughtered land animals, 8.8 percent from 6.4 percent; 
b. Milk, other dairy products and eggs, 2.7 percent from 2.4 percent; 
c. Oils and fats, 3.5 percent from 2.2 percent; and 
d. Fruits and nuts, 6.9 percent from 6.5 percent. 

In addition, slower annual decrease was noted in the sugar, confectionery and desserts index at 1.2 percent in February 2025 from 2.3 percent annual drop in the previous month. (Tables 7 and 13) 

2.2 Main Contributors to the Food Inflation

Food inflation shared 43.4 percent or 0.9 percentage point to the overall inflation in February 2025. The top three food groups in terms of contribution to food inflation during the month were the following: 

a. Meat and other parts of slaughtered land animals with a share of 70.2 percent or 1.8 percentage points;   
b. Vegetables, tubers, plantains, cooking bananas and pulses with a share of 24.7 percent or 0.6 percentage point; and 
c. Fish and other seafood with a share of 20.4 percent or 0.5 percentage point.

3. Core Inflation

Core inflation, which excludes selected food and energy items, slowed down to 2.4 percent in February 2025 from 2.6 percent in January 2025. In February 2024, core inflation rate was faster at 3.6 percent. (Tables A, 11, and 17) 
 

B. National Capital Region (NCR)

Similarly, inflation in NCR moved at a slower pace in February 2025 at 2.3 percent from 2.8 percent in the previous month. In February 2024, inflation rate in the area was recorded at 3.2 percent. (Tables A, 5, and 15)

The downtrend of inflation in NCR for the month of February 2025 was mainly contributed by the slower annual increment in the heavily-weighted food and non-alcoholic beverages at 4.3 percent during the month from 5.5 percent in January 2025. Also contributed to the downtrend in the overall inflation in NCR were the annual drop observed in the transport index at 1.0 percent during the month from 0.2 percent annual increase in January 2025, and the slower inflation rate in the housing, water, electricity, gas and other fuels index at 1.9 percent in February 2025 from 2.2 percent in the previous month. 

Likewise, lower inflation rates were observed in the indices of the following commodity groups during the month: 

a. Clothing and footwear, 1.1 percent from 1.2 percent; 
b. Furnishings, household equipment and routine household maintenance, 0.6 percent from 0.7 percent; and 
c. Health, 1.6 percent from 1.8 percent.

On the contrary, higher inflation rates during the month were noted in the indices of the following commodity groups: 

a. Alcoholic beverages and tobacco, 2.8 percent from 2.6 percent; 
b. Recreation, sport and culture, 0.8 percent from 0.7 percent; and 
c. Restaurants and accommodation services, 1.8 percent from 1.7 percent. 

The rest of the commodity groups moved at their respective previous month’s annual rates. (Tables 5 and 6) 

C. Areas Outside NCR (AONCR)

Inflation rate in AONCR, likewise, decelerated to 2.0 percent in February 2025 from 2.9 percent in January 2025. Inflation rate in the area in February 2024 was higher at 3.5 percent. (Tables A, 5, and 16) 

The deceleration of inflation in AONCR was mainly due to the slower annual increase in the food and non-alcoholic beverages index at 2.2 percent in February 2025 from 3.6 percent in January 2025. Also contributed to the downtrend of inflation in the area were the lower annual growth rates in the housing, water, electricity, gas and other fuels at 1.5 percent in February 2025 from 2.2 percent in the previous month, and transport with an annual increase of 0.1 percent in during the month from 1.2 percent in January 2025. 

Moreover, slower annual increments were observed in the indices of the following commodity groups during the month: 

a. Alcoholic beverages and tobacco, 3.5 percent from 3.6 percent; 
b. Clothing and footwear, 2.3 percent from 2.5 percent;  
c. Furnishings, household equipment and routine household maintenance, 2.7 percent from 3.1 percent; 
d. Health, 2.4 percent from 2.6 percent; 
e. Recreation, sport and culture, 2.7 percent from 2.8 percent; 
f.  Restaurants and accommodation services, 3.2 percent from 3.8 percent; and 
g. Personal care, and miscellaneous goods and services, 2.7 percent from 2.8 percent. 

In contrast, higher annual increment was observed in the index of information and communication at 0.4 percent in February 2025 from 0.3 percent in the previous month. 

The indices of the rest of the commodity groups moved at their respective previous month’s year-on-year increments. (Tables 5 and 6) 

Except for Region VII (Central Visayas), which retained its previous month’s inflation rate, all regions outside NCR recorded downtrend in their inflation rates during the month relative to their respective annual rates January 2025. For the fourth consecutive month, Region II (Cagayan Valley) remained as the region with the highest inflation rate at 3.9 percent, while Region XII (SOCCSKSARGEN) still registered the lowest inflation rate at 0.3 percent annual drop. (Table 6)  

Note: CPIs and inflation rates by province and selected city are posted at the PSA OpenSTAT portal at https://openstat.psa.gov.ph/PXWeb/pxweb/en/DB/DB__2M__PI__CPI__2018/?tablelist=true.

CLAIRE DENNIS S. MAPA, PhD                             
Undersecretary                              
National Statistician and Civil Registrar General                              
 

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