Inflation Falls to 2.1% in February

The Philippines’ headline inflation rate eased to 2.1% in February, down from 2.9% in January, marking its lowest level since September 2024, according to the Philippine Statistics Authority (PSA).

This decline was driven by slower food and non-food inflation, with food inflation dropping to 2.6% from 4.0% and non-food inflation falling to 1.7% from 2.2%.

Core inflation also decreased to 2.4% in February from 2.6% in January, reflecting a broader moderation in price pressures.

Food Prices Drive Inflation Slowdown

Rice prices posted a sharper deflation of -4.9% in February, compared to -2.3% in January, as international prices eased and tariffs were reduced.

Vegetable inflation also slowed significantly to 7.1% from 21.1% in the previous month, offsetting faster inflation in meat, which rose to 8.8% from 6.4%.

“The government will sustain its efforts to keep inflation low and manageable to protect the purchasing power of Filipinos,” National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan said.

Support for Farmers and Livestock Industry

To address rising fuel prices, the Department of Agriculture (DA) implemented the Fuel Assistance to Farmers Project, with 74.3% of 2023 beneficiaries receiving fuel assistance cards as of January 28, 2025.

For 2024, 54.1% of targeted beneficiaries have already been processed for funding.

In the livestock sector, efforts to combat African Swine Fever (ASF) are being accelerated.

The Inter-Agency Committee on Inflation and Market Outlook and the Economic Development Group advised the DA-Bureau of Animal Industry to expedite the collection of post-vaccination results from 28 hog farms.

This data will be submitted to the Food and Drug Administration to speed up the registration of the ASF vaccine for commercial use.

President Ferdinand R. Marcos Jr. signed Executive Order (EO) No. 83 on February 13, 2025, granting real property tax relief to independent power producers (IPPs) operating under Build-Operate-Transfer contracts with government-owned corporations.

The EO aims to ease the financial burden on IPPs and ensure a stable electricity supply.

Meanwhile, the DA is preparing for the potential impact of La Niña, as six to 13 typhoons are expected between March and August 2025.

The agency’s action plan includes water management, financial assistance, credit support, and an information campaign to restore agricultural productivity in areas likely to be affected by heavy rainfall, flooding, and landslides.

Medium-Term Agricultural Support

For the medium term, the Department of Science and Technology is funding the Brisk Response through In-location Diagnostics and Genomic Sequencing System for Animal Disease Testing and Vaccine Research Project.

The project, which aims to enhance vaccine development for animal diseases, is expected to be completed by August 2026.

NEDA Secretary Balisacan highlighted the importance of continued efforts to combat inflationary pressures, particularly in food prices.

“The downward trend in headline inflation indicates that our efforts to combat inflationary pressures are working. However, we will not be complacent in addressing causes of commodity price increases, particularly for food, to help uplift the lives of poor and vulnerable Filipino families,” Balisacan said.