The Department of Finance (DOF) cited the government’s strong, coordinated approach for bringing the full-year 2025 inflation down to 1.7%, its lowest level in nearly a decade.

This is significantly lower than the 2024 average inflation rate of 3.2% and well below the Bangko Sentral ng Pilipinas’ (BSP) target range of 2.0% to 4.0% for 2025.

“This record-low inflation in 2025 reflects the effectiveness of our collective efforts under the strong leadership of President Ferdinand R. Marcos, Jr.,” Finance Secretary Frederick D. Go said.

In addition, the average inflation rate is also lower than the expected global inflation rate of 4.2% for 2025, based on the International Monetary Fund (IMF) October 2025 World Economic Outlook (WEO) Report.

Compared to ASEAN-5 economies, the Philippines’ 2025 inflation rate remains lower than Vietnam (3.3%) and Indonesia (1.9%), and just above the January to November average in Malaysia (1.4%) and Thailand (-0.1%).

“The DOF is committed to implement necessary measures to keep inflation manageable and ensure that Filipino families are protected from price shocks,” Secretary Go added.

Rice inflation declined by 12.3% year-on-year (y-o-y), slower than the 15.4% drop in November 2025. The average retail price of rice was PHP 45.48/kg in December 2025, significantly lower than the PHP 52.21/kg price during the same period in 2024.

The average inflation for the bottom 30% income households improved to just 0.3% in 2025, significantly lower than its peak of 5.8% in July 2024 and the average of 4.2% in the same year.

Whole-of-government approach to mitigate food and non-food inflation

Consistent with the President’s directive, the government has rolled out programs to manage the price of essential commodities and expand targeted assistance for vulnerable communities.

This includes lowering the maximum suggested retail price (MSRP) for imported rice and expanding the ‘Benteng Bigas, Meron Na!’ program nationwide, which is supported by a digital registry to ensure the assistance reaches the right beneficiaries.

In addition, the Department of Agriculture (DA) set MSRPs for pork and onions, coordinated crop-shifting measures with the National Irrigation Administration (NIA), and strengthened market monitoring to enforce price caps and protect consumers.

Moreover, the government rolled out various relief and emergency cash assistance, as well as agricultural support in December 2025 to keep essentials affordable and assist communities affected by earthquakes and typhoons.

These included DA’s farm input support and indemnification, over PHP 7.8 million in relief from the Department of Social Welfare and Development (DSWD), and cash aid to affected tourism workers in coordination with the Department of Tourism (DOT).

The National Government (NG) also continues to implement targeted transport-related interventions to alleviate transport costs. The Land Transportation Franchising and Regulatory Board (LTFRB) temporarily capped transport network vehicle services (TNVS) surge pricing from December 17, 2025 to early January 2026 to ease commuter costs during the holiday season.