FX.co ★ Philippines Inflation Rate at 11-Month High

In January 2026, the annual inflation rate in the Philippines climbed to 2%, surpassing both market expectations and the previous month’s rate of 1.8%. This rate represents the highest inflation since February, primarily fueled by a significant hike in housing and utility expenses, which soared to 3.3%, the highest in fifteen months, up from December’s 2.5%. Additionally, there were accelerated price increases in sectors such as furnishings, household equipment and maintenance (2.3% compared to 1.9%), restaurants and accommodation services (4% versus 2.4%), and personal care along with miscellaneous goods and services (2.6% against 2.2%). Conversely, the inflation rate for food and non-alcoholic beverages (1.1% compared to 1.4%) and alcoholic beverages and tobacco (3.1% compared to 3.3%) showed a deceleration, while transport costs fell for the first time in five months (-0.3% compared to 0.3%). On a monthly scale, consumer prices went up by 0.8% in January, following a 0.9% increase in the previous period. Core inflation, which excludes specific food and energy items, rose to 2.8%, marking the highest level since July 2024, compared to 2.4% in December.