The Philippines’ inflation rate rose to 1.8% in December 2025, up from 1.5% in November, the Philippine Statistics Authority (PSA) reported. Despite the increase, the rate remains lower than the 2.9% in December 2024.

The uptick in December was mainly driven by faster year-on-year growth in food and non-alcoholic beverages, which rose 1.4% compared to just 0.1% in November. Clothing and footwear also contributed to the increase, rising 2.2% from 1.8% the previous month.

On the other hand, inflation eased in several sectors, including the following:

• Alcoholic beverages and tobacco (3.3% from 3.6%)

• Housing and utilities (2.5% from 2.9%)

• Furnishings and household equipment (1.9% from 2.0%)

• Transport (0.3% from 1.7%)

• Recreation and culture (2.0% from 2.1%)

• Restaurants and accommodation services (2.4% from 2.6%)

• Personal care and miscellaneous goods (2.2% from 2.4%)

According to the PSA, the top contributors to December’s overall inflation were food and non-alcoholic beverages, accounting for 31% of the rate or 0.6 percentage point housing, water, electricity, gas, and other fuels with 27.7% share or 0.5 percentage point; and restaurants and accommodation services, contributing 12.9 percent or 0.2 percentage point.