The inflation rate of the Philippines for the month of January 2026 landed at 2% which is the highest in almost a year’s time, according to a news report by BusinessWorld.
To put things in perspective, posted below is an excerpt from the news report of BusinessWorld. Some parts in boldface…
PHILIPPINE INFLATION accelerated to its fastest pace in nearly a year in January amid a faster rise in rents and electricity rates, the Philippine Statistics Authority (PSA) reported.
Headline inflation picked up to 2% from 1.8% in December but slowed from 2.9% in the same month last year. This was the fastest pace seen in 11 months or since 2.1% in February 2025.
It also marked the first time in almost a year that the consumer price index (CPI) hit the Bangko Sentral ng Pilipinas’ (BSP) 2%-4% target.
The January clip was likewise above the 1.8% median forecast in a BusinessWorld poll of 18 economists but was within the central bank’s 1.4%-2.2% estimate for the month.
“The main reason for the higher inflation rate in January 2026 compared with December 2025 is the faster price increase in housing, water, electricity, gas, and other fuels, which recorded a 3.3% inflation rate,” National Statistician Claire Dennis S. Mapa said at a news briefing on Thursday.
Inflation for housing, water, electricity, gas and other fuels quickened to 3.3%, the fastest since 3.8% in August 2024.
According to the PSA, this commodity group had a 45.9% share in the overall inflation uptick in January.
Broken down, inflation for electricity rose to 6.5% year on year in January from the revised 4% in December, while rental prices picked up by 2.9% during the month from 2.4% in December.
This comes even after Manila Electric. Co. trimmed electricity rates by 16.37 centavos per kilowatt-hour (kWh) to P12.9508 per kWh last month from P13.1145 per kWh in December, which meant households consuming an average of 200 kWh paid P33 less in their monthly electricity bill.
In January 2025, Meralco charged P11.7428 per kWh.
The Department of Economy, Planning, and Development (DEPDev) said the government is enforcing programs to manage price pressures emerging from the energy sector. It includes improving the Department of Energy’s Net Metering Program by enforcing time-bound local permitting, simplifying utility documentary requirements and expanding consumer incentives.
“The program allows consumers to install eligible renewable energy systems and export surplus electricity to the grid, helping lower electricity costs and support the energy transition,” the DEPDev said in a statement.
Mr. Mapa also noted that liquefied petroleum gas (LPG) added price pressures, as inflation settled at -2.8% in January from -5.1% in December.
In January, Petron Corp. hiked LPG prices by P2.18 per kilogram (kg), while Solane imposed a P2.18-per-kg increase.
This means that the price of a household-standard 11-kg LPG tank ranged from P820 to P1,120 last month, based on data from the Department of Energy.
Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the inflation rate of the Philippines could rise to as much as 3% this year? What do you think will be the factors – both internal and external – that will cause the inflation rate to spike?
You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.
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