Philippine inflation hits 13-month high in February

Inflation in the Philippines climbed to a 13-month high of 2.4% in February, driven by higher costs for housing, utilities, and food, the Philippine Statistics Authority reported Thursday.

The latest inflation rate was faster than the 2.0% recorded in January and marked the third consecutive month of acceleration.

It was also the highest since the 2.9% inflation rate posted in January 2025.

According to the PSA, the housing, water, electricity, and gas sector recorded a 3.5% inflation rate in February, contributing the largest share to the overall increase.

Food and non-alcoholic beverages followed, with inflation rising to 1.8% from 1.1% the previous month.

Other commodity groups also posted faster annual price increases during the period.

Clothing and footwear rose to 2.4% from 2.3%.

Furnishings, household equipment, and routine household maintenance increased to 2.9% from 2.3%.

Health-related costs also went up to 3.2% from 3.0%.

Recreation, sport, and culture recorded a sharper increase at 4.3% from 2.2%.

Restaurants and accommodation services climbed to 4.4% from 4.0%.

Personal care and miscellaneous goods and services rose to 2.8% from 2.6%.

The PSA said it continues to monitor price movements across commodity groups as inflation trends evolve in the coming months.

In a separate statement on the medium-term inflation path, the BSP said the February 2026 inflation outturn of 2.4 is within the central bank’s forecast range of 2.3%–3.1%.

“The inflation outlook remains manageable, with inflation expectations well anchored,” the BSP said.

However, the BSP said its 2026 inflation forecasts have risen slightly to 3.6%, due mainly to supply-side pressures.

Inflation is projected to ease to 3.2% in 2027, close to the 3.0% target, the BSP said.

The Monetary Board will remain vigilant and guided by incoming data, specifically on inflation, according to the BSP.

“We are watchful of the recent developments in the Middle East for their implications on near-term inflation and economic activity,” the BSP said.

The BSP said it will ensure policy settings remain in line with its pursuit of price stability conducive to sustainable growth and employment.

The BSP’s inflation target is set as a band around its medium-term goal, and policymakers typically weigh domestic supply shocks and external risks such as energy-related developments when calibrating monetary policy.