Costlier utilities, rent push inflation to 11-month high in January 2026

MANILA, Philippines – The country’s inflation rate rose to an 11-month high of 2% in January, the Philippine Statistics Authority (PSA) announced on Thursday, February 5.

The latest inflation figure is higher than the 1.8% recorded in December 2025. It is within the government’s target range of 2% to 4%, but is also the highest since February 2025’s 2.1%.

National Statistician Dennis Mapa attributed the increase to the housing, water, electricity, gas, and other fuels index (3.3% in January 2026 from 2.5% in December 2025) and the restaurants and accommodation services index (4% in January from 2.4% in December).

Electricity and housing rentals, in particular, logged inflation rates of 6.5% and 2.9%, respectively, in the first month of the year. Meanwhile, restaurants and cafés posted an inflation rate of 4.1%.

“Ang reading namin, January kasi nagsisimula ‘yung pag-adjust nung mga yearly rentals…. Nakikita namin na sunod-sunod na ito, baka ‘yung months ng February, March, may mga makikita [rin] tayong pagtaas dito,” Mapa said in a press briefing on Thursday.

(Our reading is that adjustments in yearly rentals usually begin in January. We expect this uptrend to continue, so we’ll probably see further hikes in the months of February, March.)

Mapa also noted that the restaurants and accommodation services index includes carinderias or eateries, which are frequented by many Filipinos. Prices of typical meals in such eateries went up, according to the PSA.

“Tumataas kasi ‘yung raw material din, lalo na ‘yung karne ng baboy. Tumataas din ‘yung energy, kasi siyempre ginagamit mo ‘yung electricity. Maybe renta…plus maybe ‘yung wages, so these are contributing factors,” added Mapa.

(Prices of some raw materials, especially pork, are going up. Energy costs are also increasing since eateries use electricity, of course. Maybe their rent is higher too, plus maybe wages, so these are contributing factors.)

In the National Capital Region alone, inflation eased to 1.9% in January from 2.3% in December. But in areas outside NCR, inflation accelerated to 2% from 1.7%, also mainly driven by housing, water, electricity, gas, and other fuels.

Central Visayas saw the highest inflation rate for the sixth straight month, with 5.6%, while Cagayan Valley had the lowest with -0.1%. A negative inflation rate or deflation means the general level of prices is going down.

The Bangko Sentral ng Pilipinas (BSP) previously estimated January inflation would fall within the range of 1.4% to 2.2%.

The BSP on Thursday acknowledged the weakening outlook on domestic economic activity and declining business sentiment amid the Philippines’ infrastructure corruption scandal, but said that it expects domestic demand “to rebound gradually as the effects of monetary policy easing work their way through the economy and public spending improves.”

Last December, the central bank further cut the country’s key interest rate to 4.5%. But it reiterated in its latest statement that the monetary policy easing cycle is likely “nearing its end.”

The next meeting of the BSP’s Monetary Board is set for February 19. – Rappler.com