The Department of Finance (DOF) highlighted that the Philippines’ 2.0% inflation rate in January 2026 remains manageable and reflects resilient domestic demand, signaling rising economic growth.

The inflation rate is within the 2.0-4.0% government target. It is also lower than the 2.9% recorded in January last year.

“The inflation rate in January signals robust household spending. We see 2026 as a pivotal year where we expect momentum to build and the economy to gain even stronger footing,” Finance Secretary Frederick D. Go said.

Based on the October 2025 World Economic Outlook report, the Philippines’ inflation rate is also below the International Monetary Fund’s (IMF) 2026 projections of 3.7% for global inflation and 4.7% for emerging market and developing economies.

Food inflation eased to 0.7% year-on-year (y-o-y) in January 2026, down from 4.0% during the same period last year. Average rice prices in January 2026 have improved to PHP 47.21/kg, compared to last year when prices were higher at around PHP 51.75/kg.

Meanwhile, inflation for the bottom 30% income households settled at 1.6%, lower than the 2.4% recorded a year earlier.

Gov’t interventions to strengthen food, social welfare, and energy security

Consistent with the President’s directive, the national government remains committed to maintaining price stability and ensuring the availability of affordable food in the market.

To support farmers and strengthen food security, the Department of Agriculture (DA) is expanding rice post-harvest facilities in 2026 to improve storage and reduce crop losses.

This year’s General Appropriations Act (GAA) raised the Philippine Crop Insurance Corporation’s (PCIC) budget by 45% to PHP 6.5 billion, expanding free insurance coverage, increasing rice and corn protection to PHP 25,000/hectare, and extending benefits to more farmers and fisherfolk nationwide.

To shield consumers from high power rates, the Department of Energy (DOE), Department of Social Welfare and Development (DSWD), and Energy Regulatory Commission (ERC) have made it easier for eligible Pantawid Pamilyang Pilipino Program (4Ps) beneficiaries to enroll in the Lifeline Rate Subsidy Program.

Using data-matching with distribution utilities, the program eliminates manual applications, ensuring faster and more timely access to electricity subsidies.