10/11/2025
Philippine Inflation Holds Steady at 1.7% in October 2025
• The Philippine Statistics Authority (PSA) reported that the country’s inflation rate stayed at 1.7% in October 2025, unchanged from September. This marks the eighth consecutive month inflation remained below the Bangko Sentral ng Pilipinas (BSP) target band of 2–4%.
• Price increases for housing, water, electricity, gas, and other fuels quickened to 2.7% from 2.1% in September. The PSA cited electricity and water as the main contributors. Meralco’s ₱0.2331 per kWh increase in October added around ₱47 to a typical 200-kWh household bill, while water rates also rose slightly after quarterly adjustments for Metro Manila concessionaires.
• Inflation for food and non-alcoholic beverages slowed to 0.5% from 1.0%, helping offset higher utility costs. Rice inflation stayed negative for the tenth straight month at –17.0%, with regular-milled rice averaging ₱40.09 per kilo, over 20% lower than a year earlier.
• Vegetable prices eased to 16.6% from 19.4%, and meat inflation slowed to 5.2% from 6.0%. Fish and seafood inflation rose to 8.2%, and oils and fats climbed to 9.4%, showing the impact of weather disruptions.
• Core inflation (excluding food and energy) dipped to 2.5% from 2.6%, indicating mild underlying demand pressures.
• Regionally, inflation in the National Capital Region (NCR) accelerated to 2.9% from 2.7%, while Areas Outside NCR (AONCR) eased to 1.3% from 1.5%. Central Visayas posted the highest rate at 2.6%, and BARMM recorded a 1.3% annual decline, the sharpest nationwide.
• The BSP said October’s figure fell within its 1.4–2.2% forecast range and reaffirmed that inflation is on track to average below target for 2025. Its ongoing easing cycle, totaling 175 basis points in rate cuts since August 2024, could continue if prices remain subdued.
• Analysts from HSBC Global Research and Chinabank Research said low inflation gives policymakers room to support growth, though fuel price changes and weather could pose risks.
• The Department of Economy, Planning, and Development (DEPDev) attributed steady inflation to coordinated supply-side actions such as timing of agricultural imports and utility regulation. Secretary Arsenio Balisacan said these measures help keep essential goods affordable while the government pursues long-term improvements in farm infrastructure, livestock competitiveness, and energy diversification.
Full report here:
https://filgit.com/philippine-inflation-steady-as-utilities-rise-and-food-prices-cool
Inflation stays steady as utility costs rise and food prices ease, keeping rates below BSP’s target range as of October 2025.
