The rise in transport costs—up 1.0 percent in September after a 0.3 percent decline in August—was the main driver of the uptick. The food and non-alcoholic beverages index also inched up to 1.0 percent from 0.9 percent a month earlier, while the rate of increase in the prices in restaurants and accommodation services rose to 2.4 percent from 2.3 percent.
Robust domestic demand and subdued inflation will support Philippine economic growth this year and next, according to a report released by the Asian Development Bank (ADB) on Tuesday.
Headline inflation rose to 1.4 percent in June 2025, up slightly from 1.3 percent in May, driven mainly by a faster year-on-year increase in housing, water, electricity, gas, and other fuel costs. In comparison, inflation in June 2024 stood at 3.7 percent.
The Philippines’ headline inflation eased to 1.8 percent in March 2025, down from 2.1 percent in February and significantly lower than the 3.7 percent recorded in March 2024.
The central bank said this forecast reflects a continued slowdown in price increases, supported by improved supply conditions and currency appreciation, even as some consumer costs remain elevated.
The deceleration was primarily influenced by a lower rise in food and non-alcoholic beverages (2.6 percent from 3.8 percent) and declining transport costs (-0.2 percent from +1.1 percent).
Local banks are getting a competitive boost as the Bangko Sentral ng Pilipinas (BSP) slashes the reserve requirement ratio (RRR) by 200 basis points, injecting at least P300 billion into the financial system, according to the Bank of the Philippine Islands (BPI).