The Philippines’ headline inflation rate saw a slight acceleration in September 2025, rising to 1.7%, according to the latest data released by the Philippine Statistics Authority (PSA).
This marks a sharp decline from August’s 1.5% and September 2024’s 1.9% rates, falling within the central bank’s projected range of 1.5% to 2.3%.
The PSA reported that the uptrend in overall inflation was primarily driven by the annual increase in the transport index, which rebounded to 1.0% in September after recording a 0.3% annual decline in August.
Additionally, the food and non-alcoholic beverages index saw an increment, moving from 0.9% to 1.0% during the month.
Prices for restaurants and accommodation services also showed an accelerated annual increase, rising to 2.4% in September from the 2.3% rate observed in August 2025.
Core inflation. While the headline rate accelerated, core inflation, which excludes volatile food and energy items, slowed down to 2.6% in September 2025, falling from 2.7% in August 2025.
Food inflation. The PSA noted that food inflation at the national level recorded a faster hike of 0.8% in September, coming from 0.6% in the previous month. It is, however, lower than the 1.4% recorded in September 2024.
The acceleration in food prices was primarily driven by a faster year-on-year increase in vegetables, tubers, plantains, cooking bananas, and pulses, which soared to 19.4% from 10.0% in August.
A slower annual decline in corn, 4.5% from 11.8%, also contributed, alongside faster annual hikes in oils and fats (9.3%) and a slower decrease in rice prices, with 16.9% from 17% last month.
In a statement, the Bangko Sentral ng Pilipinas (BSP) noted that despite inflation expectations remaining well-anchored, it cautioned that potential supply-side pressures could arise from higher rice tariffs and rising global food prices.
Meanwhile, it also noted that the anticipated stability in global oil production-and the resulting lower oil prices-could help counterbalance the impact of higher electricity rates.
‘The Monetary Board observed that domestic demand has held firm. However, the impact of US policies on global trade and investment continues to weigh on global economic activity. This could temper the outlook for the Philippine economy,’ the BSP said.
On August 28, the BSP trimmed its interest rates by another 25 basis points, bringing the target repurchase rate to 5%.
Analysts anticipate that the BSP will maintain its key policy rate at 5.0% during its upcoming meeting on October 9, adopting a cautious stance due to lingering food price and currency risks.