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 in January 2025 remained at 2.9 percent, the same annual growth rate recorded in December 2024. Inflation in January 2024 was posted at 2.8 percent. (Figure 1, and Tables A, B, 5, 6, and 14)

Faster annual increases were observed in the indices of the following commodity groups during the month:

a. Food and non-alcoholic beverages, 3.8 percent from 3.4 percent;
b. Alcoholic beverages and tobacco, 3.5 percent from 3.1 percent; and
c. Transport, 1.1 percent from 0.9 percent.

Meanwhile, financial services recorded a zero percent inflation rate in January 2025 from a 0.6 percent annual decrease in December 2024.

On the other hand, lower inflation rates were noted in the indices of the following commodity groups in January 2025:

a. Clothing and footwear, 2.3 percent from 2.4 percent;
b. Housing, water, electricity, gas and other fuels, 2.2 percent from 2.9 percent;
c. Furnishings, household equipment and routine household maintenance, 2.6 percent from 2.7 percent;
d. Recreation, sport and culture, 2.4 percent from 2.5 percent;
e. Education services, 4.2 percent from 4.3 percent;
f.  Restaurants and accommodation services, 3.2 percent from 3.8 percent; and
g. Personal care, and miscellaneous goods and services, 2.8 percent from 2.9 percent.

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

1.1 Main Contributors to the January 2025 Headline Inflation

The food and non-alcoholic beverages, which registered an inflation rate of 3.8 percent in January 2025, contributed 50.3 percent or 1.5 percentage points to the overall inflation during the month.

Other main contributors to the January 2025 inflation were the following:

a. Housing, water, electricity gas and other fuels with 16.5 percent share or 0.5 percentage point; and  
b. Restaurants and accommodation services with 10.8 percent share or 0.3 percentage point. 

2. Food Inflation

Food inflation at the national level rose to 4.0 percent in January 2025 from 3.5 percent in the previous month. In January 2024, food inflation was lower at 3.3 percent. (Table 9)

2.1 Main Drivers to the Upward Trend of Food Inflation

The acceleration of food inflation in January 2025 was primarily brought about by the faster inflation rate of vegetables, tubers, plantains, cooking bananas and pulses at 21.1 percent during the month from 14.2 percent in December 2024. Also contributed to the uptrend of the food inflation were the faster annual increases in the indices of fish and other seafood at 3.3 percent in January 2025 from 1.0 percent in the previous month, and meat and other parts of slaughtered land animals at 6.4 percent in January 2025 from 4.9 percent in the previous month.

Moreover, the index of oils and fats had a faster annual growth rate of 2.2 percent in January 2025 from 0.9 percent in the previous month, while the index of sugar, confectionery and desserts showed a slower year-on-year decline of 2.3 percent during the month from a 2.7 percent annual decrease in December 2024.

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

a. Corn 3.6 percent from 5.0 percent;
b. Flour, bread and other bakery products, pasta products, and other cereals, 1.7 percent from 1.8 percent; and
c. Fruits and nuts, 6.5 percent from 7.6 percent.

The index of rice recorded an annual decline of 2.3 percent during the month from a 0.8 percent annual increase in the previous month. The indices of the rest of the commodity groups moved at their respective annual rates in December 2024. (Tables 7 and 13)

2.2 Main Contributors to the Food Inflation

Food inflation shared 47.7 percent or 1.4 percentage points to the overall inflation in January 2025. The top three food groups in terms of contribution to food inflation during the month were the following:

a. Vegetables, tubers, plantains, cooking bananas and pulses with a share of 46.5 percent or 1.9 percentage points; 
b. Meat and other parts of slaughtered land animals with a share of 32.4 percent or 1.3 percentage points; and
c. Fish and other seafood with a share of 14.7 percent or 0.6 percentage point.

3. Core Inflation

Core inflation, which excludes selected food and energy items, slowed down to 2.6 percent in January 2025 from 2.8 percent in December 2024. In January 2024, core inflation rate was faster at 3.8 percent. (Tables A, 11, and 17) 
 

B. National Capital Region (NCR)

Inflation in NCR decelerated to 2.8 percent in January 2025 from 3.1 percent in the previous month. In January 2024, inflation rate in the area was recorded at 2.8 percent. (Tables A, 5, 6, and 15)

The main driver to the slowdown in the inflation rate in NCR was the lower annual increment in housing, water, electricity, gas and other fuels at 2.2 percent during the month from 3.0 percent in December 2024. Also, contributed to the deceleration of inflation in the area was the slower inflation rate reported in the index of restaurants and accommodation services at 1.7 percent during the month from 2.2 percent in the previous month.

Moreover, lower year-on-year growth rates were noted in the indices of the following commodity groups during the month: 

a. Alcoholic Beverages and Tobacco, 2.6 percent from 2.8 percent;
b. Clothing and footwear, 1.2 percent from 1.6 percent;
c. Furnishings, household equipment and routine household maintenance, 0.7 percent from 0.9 percent;
d. Health, 1.8 percent from 2.0 percent;
e. Information and communication, 0.1 percent from 0.2 percent;
f.  Recreation, sport and culture, 0.7 percent from 0.9 percent; and
g. Personal care, and miscellaneous goods and services, 2.3 percent from 2.7 percent.

In contrast, higher annual increments in January 2025 were observed in the indices of food and non-alcoholic beverages at 5.5 percent during the month from 5.4 percent in December 2024 and education services at 2.5 percent in January 2025 from 2.4 percent in the previous month.

In addition, annual increment was noted in the indices of transport at 0.2 percent in January 2025 from a 0.2 percent annual decrease in the previous month, while financial services recorded a zero percent annual rate during the month from a 0.1 percent annual drop in December 2024. (Tables 5 and 6)

C. Areas Outside NCR (AONCR)

Inflation in AONCR was observed at 2.9 percent in January 2025, the same annual rate recorded in December 2024. In January 2024, inflation in the area was recorded at 2.8 percent. (Tables A, 5, 6, and 16)

Higher annual increases were observed in the indices of the following commodity groups during the month:

a. Food and non-alcoholic beverages, 3.6 percent from 3.1 percent;
b. Alcoholic beverages and tobacco, 3.6 percent from 3.2 percent; and
c. Transport, 1.2 percent from 1.1 percent.

Meanwhile, financial services recorded a zero percent inflation rate in January 2025 from a 0.8 percent annual decrease in December 2024.

On the other hand, lower inflation rates were noted in the indices of the following commodity groups in January 2025:

a. Clothing and footwear, 2.5 percent from 2.6 percent;
b. Housing, water, electricity, gas and other fuels, 2.2 percent from 2.9 percent;
c. Furnishings, household equipment and routine household maintenance, 3.1 percent from 3.2 percent;
d. Education services, 4.8 percent from 5.0 percent;
e. Restaurants and accommodation services, 3.8 percent from 4.3 percent; and
f. Personal care, and miscellaneous goods and services, 2.8 percent from 2.9 percent.

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

Relative to their respective December 2024 inflation rates, eight regions in AONCR exhibited higher inflation rates in January 2025. For the third consecutive month, Region II (Cagayan Valley) remained as the region with the highest inflation rate at 5.1 percent, while Region XII (SOCCSKSARGEN) still registered the lowest inflation rate at 1.1 percent. (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                            
 

See more at the CPI and Inflation Rate main page.