A slower annual increase in the prices of several food items was the main driver of the easing in the Philippines’ domestic inflation rate in November 2025, which dipped to 1.5 percent from 1.7 percent in October.
Data released Friday by the Philippine Statistics Authority (PSA) also showed more moderate price hikes for alcoholic beverages and tobacco; furnishings, household equipment and routine maintenance; as well as personal care and miscellaneous goods and services.
With this, the country’s year-to-date average inflation stood at 1.6 percent—well below the Bangko Sentral ng Pilipinas’ (BSP) target range of 2 to 4 percent. In November last year, inflation was higher at 2.5 percent.
Below target
In a statement, the BSP said November’s inflation figure fell within its forecast range of 1.1 to 1.9 percent.
For 2025, the central bank expects inflation to “average below the low end of the target range,” largely due to declining rice prices in recent months.
“The outlook for inflation is generally benign, remaining well within the target range over the policy horizon. For 2026 and 2027, inflation is expected to settle within the 3 percent ±1.0 percentage point target range,” it said.
While the BSP noted that inflation expectations remain “well-anchored,” it also flagged potential upward pressures from possible electricity rate adjustments and higher tariffs on rice imports. However, it said overall risks to the inflation outlook remain limited as supply-side pressures are expected to ease.
The BSP’s Monetary Board also observed a weakening in the outlook for domestic economic growth, citing the impact of governance concerns surrounding public infrastructure spending and lingering uncertainty in the external environment.
“Moving forward, the Monetary Board will continue to review newly available information and reassess the impact of prior monetary actions in light of evolving economic conditions and their implications for inflation and growth,” the statement said.
Gains from government measures
Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan attributed the slower increases in the prices of rice, meat, and other food items to various government initiatives aimed at boosting supply, stabilizing prices, and ensuring food security.
He said the Benteng Bigas, Meron Na! program will expand to all 81 provinces before the end of 2025, enabling more Filipinos to access affordable rice.
Balisacan also noted that the Department of Agriculture (DA) has issued guidelines to strengthen protections against African swine fever (ASF) while allowing safe pork imports. These include recognizing ASF-free zones within DA-accredited exporting countries and permitting imports from these designated areas.
To assist beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps) with their electricity expenses, an inter-agency initiative is being finalized to automatically enroll eligible beneficiaries under the Lifeline Rate Subsidy, granting them free electricity.
“The sustained moderation in inflation reflects our commitment to protect consumers and strengthen our economic resilience against global and domestic headwinds. We will continue implementing timely, well-coordinated policies to keep prices stable and ensure progress is felt by every Filipino,” Balisacan said.
PNA PHOTO