January inflation at 2.0% seen as demand signal

The Department of Finance said the Philippines’ 2.0% inflation rate in January 2026 remained “manageable” and reflected resilient domestic demand, which the agency said signals rising economic growth.

The DOF noted that January 2026 inflation fell within the government’s 2.0%–4.0% target range.

The agency also pointed out that the January 2026 reading was lower than the 2.9% recorded in January 2025.

“The inflation rate in January signals robust household spending. We see 2026 as a pivotal year where we expect momentum to build and the economy to gain even stronger footing,” Finance Secretary Frederick D. Go said.

In broader context, the Philippine Statistics Authority reported that headline inflation accelerated to 2.0% in January 2026 from 1.8% in December 2025, with external reporting noting faster price increases in housing-related costs and utilities among the drivers.

Citing the October 2025 World Economic Outlook, the DOF said the Philippines’ inflation rate was below the IMF’s 2026 projections of 3.7% for global inflation and 4.7% for emerging market and developing economies.

Food inflation eased to 0.7% year on year in January 2026, down from 4.0% in the same period last year, the DOF said.

Average rice prices in January 2026 improved to PHP 47.21/kg, compared with around PHP 51.75/kg in January 2025, according to the DOF.

Inflation for the bottom 30% income households settled at 1.6% in January 2026, lower than the 2.4% recorded a year earlier, the department said.

Consistent with the President’s directive, the DOF said the national government remains committed to maintaining price stability and ensuring the availability of affordable food in the market.

To support farmers and strengthen food security, the Department of Agriculture is expanding rice post-harvest facilities in 2026 to improve storage and reduce crop losses, the DOF said.

The DOF said the 2026 General Appropriations Act raised the Philippine Crop Insurance Corp.’s budget by 45% to PHP 6.5 billion, expanding free insurance coverage.

The same allocation increases rice and corn protection to PHP 25,000/hectare and extends benefits to more farmers and fisherfolk nationwide, the DOF said.

To help shield consumers from high power rates, the DOF said the Department of Energy, Department of Social Welfare and Development, and Energy Regulatory Commission made it easier for eligible Pantawid Pamilyang Pilipino Program (4Ps) beneficiaries to enroll in the Lifeline Rate Subsidy Program.

The DOF said the process uses data-matching with distribution utilities to eliminate manual applications, aiming for faster and more timely access to electricity subsidies.