DEPDev hails 1.7% headline inflation for 2025

RESILIENT ECONOMY. High-rise buildings as seen from Torre de Manila on Tuesday (Jan. 14, 2025). Philippine economic growth remained resilient amid various headwinds, with PSA reporting a headline inflation rate of 1.7% for 2025, well below the government’s target of 2-4%. (PNA photo by Yancy Lim)

By Dean Aubrey Caratiquet

Amid various natural disasters, economic headwinds, and prevailing uncertainty amid omnipresent national issues, the Philippine Statistics Authority (PSA) reported an inflation rate of 1.8% for December 2025, lower than the 2.9% reported in December 2024.

In a briefing on Tuesday, National Statistician Claire Dennis Mapa attributed the results of the December 2025 inflation rate to a decline in the indices of key commodity groups such as transport, personal care, and alcoholic beverages and tobacco.

This was supplemented by the 1.7% headline inflation rate recorded by the agency for the previous year, which is lower than the 2-4% target range for 2025.

These figures highlight the effectiveness of key government interventions to maintain economic resilience in spite of the various challenges and inflationary pressures that defined 2025.

Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan said in a statement, “Despite global headwinds and domestic challenges, the Philippine economy has remained resilient against inflationary pressures due to the government’s timely and targeted interventions.”

Balisacan moreover, hailed the P297.1 billion in funds allocated for the agricultural sector in the 2026 national budget, which he touts as pivotal in lowering food inflation and modernizing the food industry.

Meanwhile, to address the impact of rising electricity demand and manage energy-related price pressures, the Department of Energy is accelerating the completion of 200 power generation projects, ensuring that committed capacity comes online as scheduled and meets safety and reliability standards. (with report from Denise Ossorio | PTV News)

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