Philippine inflation inches up to 1.7 percent in September 2025

Insider Spotlight

• Headline inflation rose to 1.7 percent in September 2025 from 1.5 percent in August
• The uptick was driven by higher transport and food costs
• Core inflation eased slightly to 2.6 percent from 2.7 percent
• NCR inflation slowed to 2.7 percent, while areas outside NCR rose to 1.5 percent

The Philippine Statistics Authority (PSA) reported that headline inflation in September 2025 climbed to 1.7 percent, slightly higher than August’s 1.5 percent, PSA chief Claire Dennis Mapa said. The year-to-date average now stands at 1.7 percent, well below the Bangko Sentral ng Pilipinas’ (BSP) 2–4 percent target range.

In a press briefing on Tuesday, Oct. 7, 2025, the country’s chief statistician said the core inflation rate, which strips out volatile food and energy prices, eased to 2.6 percent from 2.7 percent the previous month, indicating stable underlying price pressures.

What’s driving it

According to the PSA, 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.

Food inflation quickened to 0.8 percent as vegetables, tubers, and cooking bananas jumped 19.4 percent, offsetting slower increases in meat, fish, and dairy products.

Regional breakdown

Inflation in the National Capital Region slowed to 2.7 percent from 2.9 percent, while areas outside NCR saw a faster pace of 1.5 percent, up from 1.1 percent. Central Visayas recorded the highest inflation at 4.1 percent, while the Bangsamoro region continued to post deflation at -1.5 percent.

The big picture

The September figure, while still subdued, hints at reemerging inflationary pressures led by volatile food and fuel prices. Policymakers are expected to monitor the trend closely as the BSP calibrates its rate-cutting plans in the final quarter of 2025, starting with the Monetary Board meeting on Thursday, Oct. 9, 2025.