Finance Secretary Ralph G. Recto has welcomed the sharp drop in inflation to 2.1% in February 2025, calling it a major win for lower-income households as it provides much-needed relief, especially on food items.

“This sustained downward trend confirms that our proactive measures to curb inflation are delivering results, especially on helping alleviate the burden on vulnerable sectors. Pero hindi tayo magpapakampante—patuloy nating babantayan ang anumang maaaring magdulot ng pagtaas ng presyo, lalo na sa pagkain,” he said.

February’s inflation rate is the lowest recorded since October 2024. Notably, inflation for the bottom 30% income group further dropped to 1.5% for the month, well below the headline rate and down from 2.4% in January 2025.

Core inflation, which excludes volatile food and energy prices, also eased to 2.4% in February, creating room for potential monetary policy rate easing that would lower interest rates and provide cheaper borrowing costs for consumers and businesses.

“This will provide greater purchasing power for our people and stronger momentum for investments and growth,” the Finance Chief said.

The lower headline inflation rate in February was driven by easing prices in both food (2.6% from 4.0%) and non-food items (1.7% from 2.2%).

In particular, rice prices saw a significant improvement, contracting by 4.9% year-on-year in February— a sharp reversal from the 23.7% surge recorded a year ago and an improvement from the -2.4% rate in January.

Imported rice in the National Capital Region (NCR) posted an average double-digit drop of 13.7%.

The government’s proactive interventions—including reducing the maximum suggested retail price (MSRP) for imported rice to PHP 49/kilogram (kg) starting March 2025 and the enactment of the Anti-Agricultural Economic Sabotage Act—have effectively supported this development.

Vegetable inflation also decelerated sharply to 7.1% from 21.1% in January, further alleviating pressures on lower-income households.

Government’s sustained efforts to keep prices stable and affordable

Despite the slowdown in inflation, the government remains committed to mitigating price pressures and ensuring long-term price stability through a whole-of-government approach.

Other key measures include the amendments to the Rice Tariffication Law to stabilize the rice supply and prices, the importation of fish and pork to augment local supply, and the continued roll-out of the African swine flu (ASF) vaccine.

Additionally, the Energy Regulatory Commission (ERC) is implementing staggered electricity rate hikes to minimize inflationary impact on consumers.