THE GOVERNMENT kept inflation low in 2025, protecting the public from the erosion of its purchasing power, Executive Secretary Ralph G. Recto said on Sunday.
Lower food prices, particularly for rice, have been the main driver, easing pressure on low-income households, he said in a statement.
“To put this in perspective, a 6% inflation rate means that your P100 can buy only about P94 worth of goods and services. But with inflation down to just 1.6% in 2025, that same P100 can now buy about P98.4 worth of goods and services,” according to Mr. Recto, who was recently appointed Executive secretary after having headed the Department of Finance.
“That’s why this is very important for every Filipino family, especially the poor. When inflation is low, we can keep basic goods affordable, particularly food,” he added.
Economic expansion is expected to come in at about 5% to 5.1% this year, according to the Asian Development Bank, World Bank and International Monetary Fund (IMF), exceeding expected growth in most of Southeast Asia, he noted in a statement.
The IMF projects the Philippines to be among the fastest-growing economies in the region by 2026 alongside Vietnam.
The government has focused on stabilizing prices and securing the food supply as the key to preserving purchasing power, Mr. Recto said.
The Department of Agriculture (DA) has rolled out a subsidy program offering rice at P20 per kilogram to eligible beneficiaries, mostly vulnerable members of society, he noted.
As a result, inflation for the bottom 30% of households by income fell to minus 0.2% in November, the sixth straight contraction, he said.
The benign inflation environment has also expanded policy space for the Bangko Sentral ng Pilipinas, allowing it greater flexibility to adjust interest rates to support consumption and investment, he said.
Mr. Recto noted that S&P Global Ratings recently reaffirmed the Philippines’ “BBB+” investment-grade rating with a “positive” outlook, citing low and stable inflation. — Chloe Mari A. Hufana