Higher Feb. inflation burdens low-income Filipinos with pricier food

Insider Spotlight

• Inflation for the bottom 30 percent income households rose to 2.5 percent in February, PSA said.
• Price growth accelerated from 1.6 percent in January and 1.5 percent a year earlier.
• Food and non-alcoholic beverages drove much of the increase.
• BSP said overall February inflation remains within its forecast range.
• Central bank raised its 2026 inflation outlook to 3.6 percent, citing supply pressures.

Inflation for the country’s lowest-income households accelerated in February, reflecting higher food prices and other cost pressures, according to the latest data from the Philippine Statistics Authority (PSA).

The agency reported on Thursday, March 5, 2026 that inflation for the bottom 30 percent income households climbed to 2.5 percent in February 2026, up from 1.6 percent in January and 1.5 percent in February 2025.

The increase highlights persistent price pressures for vulnerable households even as overall inflation remains within the government’s target range.

The big picture

Food costs played a key role in the February uptick.

The PSA said the acceleration was largely driven by food and non-alcoholic beverages, which rose 2.2 percent from 0.6 percent in January.

Other categories that posted higher price increases included housing utilities, restaurants, and personal care goods.

The PSA report showed the national inflation rate for low-income households rising to 2.5 percent, with similar increases recorded outside Metro Manila.

By the numbers

Food inflation for the bottom 30 percent income households reached 1.9 percent in February, up from 0.3 percent in January, driven by price increases in fish, vegetables, and other staples.

Rice prices also remained a factor, as the decline in rice inflation slowed compared with the previous month.

BSP reaction

The Bangko Sentral ng Pilipinas (BSP) said the broader inflation environment remains manageable despite the latest data.

In a separate statement, the central bank noted that the February inflation rate of 2.4 percent is within its forecast range of 2.3 percent to 3.1 percent.

However, officials slightly raised their inflation outlook for the year.

“The 2026 inflation forecasts have risen slightly to 3.6 percent, due mainly to supply-side pressures,” the BSP said.

Inflation is expected to ease to 3.2 percent in 2027, close to the BSP’s 3-percent target.

What to watch

The central bank said policymakers will continue monitoring incoming inflation data and global developments.

“The Monetary Board will remain vigilant and guided by incoming data, specifically on inflation,” the BSP said, noting potential risks from geopolitical developments in the Middle East.

The BSP added that policy settings will remain aligned with its goal of maintaining price stability while supporting sustainable growth and employment.

— Edited by Daxim L. Lucas