Inflation steady at 2.9% in Jan.

Headline inflation in January 2025 remained unchanged at 2.9 percent year-on-year, matching the rate recorded in the previous month.

This figure aligns with the Bangko Sentral ng Pilipinas’ (BSP) forecast and stays within the government’s target range of 2-4 percent for the year.

On a month-on-month seasonally adjusted basis, inflation showed a slight decline of 0.1 percent in January, compared to a 0.5 percent increase in December. Core inflation also eased, dropping to 2.6 percent from 2.8 percent year-on-year.

Food inflation rose in January, primarily driven by higher prices for vegetables and fish, which were impacted by recent weather disturbances. Meat inflation also increased, influenced by the ongoing effects of African Swine Fever.

On a positive note, rice prices saw a decline, thanks to sufficient domestic supply and the continued arrival of imports subject to lower tariffs. Non-food inflation moderated, helped by lower electricity rates and a slowdown in inflation for restaurants and accommodation services.

This latest inflation outcome is in line with BSP’s projection that inflation will remain within the target range throughout the policy horizon.

The BSP remains vigilant and will closely monitor any emerging risks and developments that could affect the inflation outlook.

Moving forward, the Monetary Board will adopt a cautious approach to monetary policy easing to maintain price stability, supporting sustainable economic growth and job creation.