Arthur Fuentes

Ingredients primarily used for noche buena dishes go for sale at the Commonwealth Market in Quezon City on November 10, 2020. Most noche buena items' prices will stay the same as last year despite the impact of COVID-19 in manufaturing according to the Department of Trade and Industry, as the Christmas season approaches. Mark Demayo, ABS-CBN News

Article (news)

Grocery

Benise Balaoing

ABS-CBN News

<div> </div>MANILA (UPDATE 2) -- Inflation quickened to 1.8 percent in December, the Philippine Statistics Authority said on Tuesday.This was faster than the 1.5 percent inflation rate seen in November and was within the Bangko Sentral&#x27;s 1.2 to 2 percent forecast for December.<div><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/1767662241519inflation dec.png" style="width:960px;display:block" class="fr-fic fr-dib"/></div>The December clip also meant that the average inflation for 2025 was 1.7 percent, which was more benign than the 2 to 4 percent target range of economic managers.PSA Undersecretary and national Statistician Dennis Mapa said food inflation quickened to 1.2 percent in December 2025 from a 0.3 percent annual decline in November.  This was primarily due to faster inflation rate of vegetables, tubers, plantains, cooking bananas and pulses at 11.6 percent in December 2025 from 4 percent in the previous month, Mapa said. The official said he hopes the increase in food prices is seasonal and temporary. “May effect din yung mga typhoons of course, kasi kung naaalaala ninyo, yung buwan ng Nobyembre ay may malalakas tayo na bagyo, and this most probably impacted also yung mga vegetable farms natin,” he said. Rice, which carries a big share in the food basket, meanwhile saw a slower annual decline at 12.3 percent during the month from 15.4 percent in November 2025.  &quot;Also contributing to the uptrend of the headline inflation was the faster annual increase in the index of clothing and footwear at 2.2 percent in December 2025 from 1.8 percent in the previous month,&quot; the PSA said. Core inflation, which strips out food and energy prone to big price swings, remained at 2.4 percent in December 2025, the PSA said. This was lower than the December 2024 clip which was at 2.8 percent. &quot;The average core inflation rate in 2025 stood at 2.4 percent, lower than the recorded average core inflation rate of 3.0 percent in 2024,&quot; the PSA noted. Benign inflation has allowed the Bangko Sentral ng Pilipinas (BSP) to keep lowering interest rates in 2025, cutting its benchmark by a total of 200 basis points since its began its easing cycle in August 2024.  Mapa said the BSP is expecting inflation to go up this year. “Ang projection ng ating Bangko Sentral ay mas mataas ang ating 2026 inflation kumpara sa 2025. Una of course mababa yung 2025, so yung base effect niya,” he said. “Plus of course yung ating presyo ng bigas, maganda yung buong 2025 kasi bumaba naman talaga yung price of rice. But we will see kong ma-me-maintain yun kasi isa yun sa mga major reason kung bakit bumaba yung inflation rate nitong 2025,” he explained. The Department of Economy, Planning and Development (DEPDev) said the government hopes to keep inflation within 2 to 4 percent from 2026 to 2028. It noted that the government has allotted P297.1 billion for agriculture in the 2026 budget.This amount will help improve farmer productivity and boost food security, the agency said.

Inflation quickens to 1.8 percent in December

News

Entertainment

Lifestyle

Sports

Metro.Style

More

Sudoku

Word of the Day

Lotto

Horoscope

Business

Inflation quickens to 1.8 percent in December

Arthur Fuentes,

Benise Balaoing,

ABS-CBN News

Published January 06, 2026 09:06 AM PHT

|

Updated January 06, 2026 11:39 AM PHT

Read More:

inflation

consumer prices

PSA

Philippine Statistics Authority

economy

BSP

interest rates

ABSNews

ABS-CBN is the leading media and entertainment company in the Philippines, offering quality content across TV, radio, digital, and film. Committed to public service and promoting Filipino values, ABS-CBN continues to inspire and connect audiences worldwide.

Corporate

Investors

Governance

International Distribution

Corporate

Governance

Investors

International Distribution

NPC Seal of Registration

Privacy Policy

AI Policy

Terms of Service

Advertise with Us

© 2026 ABS-CBN Corporation. All Rights Reserved.

NPC Seal of Registration

Privacy Policy

Terms of Service

AI Policy

Advertise with Us

© 2026 ABS-CBN Corporation. All Rights Reserved.

NPC Seal of Registration

Privacy Policy

Terms of Service

AI Policy

Advertise with Us

© 2026 ABS-CBN Corporation. All Rights Reserved.