Price growth stalls as food inflation cools

Price increases in the Philippines held steady in October, giving consumers a breather as inflation stayed at 1.7 percent — the same pace as in September and slower than 2.3 percent a year ago.

“Inflation in the Philippines remained at 1.7 percent, the same annual growth rate recorded in September 2025,” the Philippine Statistics Authority (PSA) reported Wednesday.

A steady inflation rate means prices of goods and services are still rising, but at a slower and more predictable pace, allowing households to better plan their spending.

The PSA said cheaper food and transport costs helped offset higher prices in housing, electricity, and utilities.

Food inflation eased to 0.3 percent from 0.8 percent in September, driven by slower price increases in vegetables and meat.

Housing, water, electricity, gas and other fuels contributed the most to overall inflation, followed by restaurant services and food.

Core inflation softened

Core inflation, which strips out volatile food and energy prices, also softened to 2.5 percent in October from 2.6 percent a month earlier.

Inflation in Metro Manila rose 2.9 percent, while areas outside the capital posted a lower rate of 1.3 percent.

The state-run statistics body said this balance of trends shows a mix of easing food prices and rising utility costs — reflecting a period of relative price stability heading into the holidays.

Close monitoring by DA

Agriculture Secretary Francisco P. Tiu Laurel Jr. said the Department of Agriculture (DA) is closely monitoring prices and supply levels to prevent market instability.

“We will import when necessary to stabilize the market, especially when bad weather damages crops,” he said.

The DA has already authorized the importation of onions, carrots, fish, and seafood to ensure sufficient supply ahead of the Christmas season. The move also anticipates tighter stocks following the end of the harvest period and the ongoing fishing close season in Philippine waters.

Room to cut rates

Economists said the tame inflation gives the Bangko Sentral ng Pilipinas room to cut interest rates and stimulate lending and investment.

However, they cautioned that global oil price swings, climate shocks, and geopolitical tensions could still disrupt price stability.