Inflation for poor households accelerates to 2.5%

Inflation for the bottom 30% of income households in the Philippines climbed to 2.5 percent in February 2026, up from 1.6 percent in January, the Philippine Statistics Authority (PSA) reported. In comparison, the same period last year recorded an inflation rate of 1.5 percent.

The increase was mainly driven by higher prices for food and non-alcoholic beverages, which rose 2.2 percent annually, up from 0.6 percent in January. Other commodity groups contributing to the upward trend included housing, water, electricity, gas, and other fuels (3.5 percent), restaurants and accommodation services (5.4 percent), alcoholic beverages and tobacco (3.8 percent), and recreation, sport, and culture (4.9 percent). Clothing and footwear, furnishings, and personal care items also recorded higher year-on-year increases.

Food inflation specifically rose to 1.9 percent, compared with 0.3 percent in the previous month. The increase was driven by higher costs for fish and seafood (9.1 percent), vegetables, tubers, and pulses (8.2 percent), fruits and nuts (5.9 percent), corn (8.7 percent), and flour, bread, and cereals (2.2 percent). Meanwhile, rice continued to decline but at a slower pace, dropping 3.7 percent compared with 9.3 percent in January. Meat prices fell 1.9 percent, while sugar and confectionery products also registered declines.

Regionally, inflation trends varied. In the National Capital Region, the rate for lower-income households rose to 2.0 percent from 1.9 percent in January, influenced by higher food prices, clothing, housing, health, and recreation costs. Transport and information services showed modest increases.

Outside NCR, the inflation rate mirrored the national level at 2.5 percent, with Central Visayas (Region VII) posting the highest regional inflation at 6.9 percent. Most other regions also experienced upward trends, except for Region I (Ilocos Region), which saw little change, and Region II (Cagayan Valley), where inflation slowed slightly. Transportation costs fell further in these areas, while other commodity groups maintained steady increases.

The PSA highlighted that the main contributors to overall inflation remain food and beverages, housing and utilities, and restaurants and accommodation services, which together account for over 80 percent of the impact on low-income households. The report underscores the continued pressure on essential goods and services, particularly affecting the most vulnerable Filipino families.