Inflation in the Philippines picked up slightly in February as higher food and utility costs began to filter through household budgets, although overall price pressures remain within the government’s target range, the Bangko Sentral ng Pilipinas (BSP) reported.
Headline inflation rose to 2.4 percent year-on-year in February, up from 2.0 percent in January. The figure landed within the BSP’s projected range of 2.3 percent to 3.1 percent for the month, suggesting that while prices are edging upward, inflation remains broadly under control.
For the first two months of the year, average inflation stood at 2.2 percent, still below the central bank’s 3.0 percent full-year target but comfortably within the allowable band of plus or minus one percentage point.
The uptick in February was largely driven by higher food prices, particularly vegetables, fish, and seafood. Supply disruptions caused by adverse weather conditions, combined with the implementation of the annual closed fishing season, contributed to tighter market availability and rising prices for key food items.
Rice, a major component of the consumer basket, continued to post declining inflation during the month, though the pace of the slowdown moderated. Analysts attribute this to tighter domestic supply conditions linked to import restrictions introduced in late 2025, alongside seasonal pressures from the country’s lean harvest period.
Inflation pressures were also felt outside the food sector. Costs for housing, water, electricity, gas, and other fuels rose during the month, while restaurants and accommodation services also registered higher prices, reflecting stronger demand and rising operational expenses.
On a month-on-month basis, inflation accelerated more noticeably. Seasonally adjusted data showed prices increasing by 0.4 percent in February, compared with just 0.1 percent in January, indicating a quicker buildup of price pressures during the period.
Underlying inflation also showed signs of firming. Core inflation, which strips out volatile food and energy prices to better capture long-term trends, climbed slightly to 2.9 percent in February from 2.8 percent the previous month.
Despite the uptick, the BSP signaled that inflation remains broadly manageable but warned that external risks could still influence the outlook. The central bank said it is closely monitoring geopolitical developments in the Middle East, particularly the potential for rising oil prices to spill over into domestic transport, electricity, and production costs.
The Monetary Board reiterated that it will continue to rely on incoming economic data when determining its policy stance. Officials emphasized that monetary settings will remain aligned with the central bank’s mandate of maintaining price stability while supporting sustainable economic growth.