Food inflation eases in January 2026, DEPDev says

Food inflation slowed in January 2026, helping keep the Philippines’ overall inflation “manageable” and within the government’s outlook at the start of the year, the Department of Economy, Planning, and Development (DEPDev) said.

The Philippine Statistics Authority reported Thursday, Feb. 5, that headline inflation stood at 2.0% in January 2026, slightly higher than 1.8% in December 2025, as non-food inflation rose to 2.5% from 2.0% over the same period.

Despite the uptick in overall inflation, food inflation decelerated to 0.7% in January 2026 from 1.2% in December 2025.

“We see the easing of food inflation beneficial for Filipino households, particularly for lower-income families where food accounts for a larger share of expenditures,” said DEPDev Undersecretary Rosemarie G. Edillon, in her capacity as the agency’s officer in charge while Secretary Arsenio M. Balisacan is on official business abroad.

The government is maintaining its 2%–4% inflation targets for 2026 and 2027 while watching for emerging upside risks, DEPDev said.

“We will continue building on this progress by sustaining efforts to support Filipino families’ purchasing power, alongside other reforms that strengthen resilience and promote long-term growth,” Edillon added.

DEPDev said the easing in food inflation was largely driven by slower price increases for vegetables, fish, and meat.

Prices for key meat items cooled in January 2026 compared with the previous month, with pork at 0.5% from 4.8%, chicken at 0.6% from 0.7%, and beef at 4.6% from 5.5%, DEPDev said.

“Fewer areas were affected by African Swine Flu cases, while faster withdrawals from cold storage facilities helped temper both pork and chicken price increases,” Edillon explained.

At the same time, inflation accelerated in several non-food sectors, including housing rentals at 2.8% from 2.4%, electricity at 6.5% from 4.1%, and food and beverage services at 4.0% from 2.5% in January 2026 versus December 2025.

To address the faster pace of non-food inflation, DEPDev said the government is rolling out measures focused on the energy sector.

First, DEPDev said the Department of Energy is streamlining and strengthening the Net Metering Program by enforcing time-bound local permitting, simplifying utility documentary requirements, and expanding consumer incentives.

The Net Metering Program allows consumers to install eligible renewable energy systems and export surplus electricity to the grid, which can help lower electricity costs while supporting the country’s energy transition, DEPDev said.

Second, DEPDev said the Energy Regulatory Commission adopted a uniform lifeline consumption threshold of 0–50 kWh that grants qualified customers a 100% discount on applicable electricity charges.

DEPDev added that the ERC also approved a uniform lifeline subsidy rate of PHP 0.01/kWh to provide equitable discounts for marginalized and low-income households.

“Rest assured that we are exerting all efforts to strengthen food systems, improve climate resilience, and enhance governance to further support price stability and help sustain economic momentum in the months ahead,” Edillon said.

In a separate statement on the inflation outlook, the Bangko Sentral ng Pilipinas said the January 2026 inflation outturn of 2% fell within its forecast range of 1.4% to 2.2%.

The BSP said the medium-term inflation outlook “continues to be benign” and that inflation expectations remain “well anchored,” adding that inflation for 2026 and 2027 is expected to settle within the 3.0% + 1.0 percentage point target.

The Monetary Board noted that the outlook for domestic economic activity “has weakened further,” citing declining business sentiment amid governance concerns and uncertainty over global trade policy.

Still, the BSP said domestic demand is expected to rebound gradually as the effects of monetary policy easing work through the economy and as public spending improves.

On balance, the Monetary Board said the easing cycle is nearing its end, with any further easing likely to be limited and guided by incoming data.

The Monetary Board will meet on Feb. 19, 2026, to discuss its evolving assessment of Philippine macroeconomic prospects and their implications for monetary policy.