Philippine inflation quickens to 11-month high in January

MANILA — Philippine annual inflation accelerated to 2.0 per cent in January, the fastest pace in 11 months, driven mainly by higher costs for utilities and housing rentals but the rate should provide policymakers enough comfort around current monetary settings.

January's result came in above the 1.8 per cent median forecast in a Reuters poll, which matched December's rate, and was well within the central bank's two per cent to four per cent target for the year.

After cutting rates by a total 200 basis points to 4.5 per cent, the Philippine central bank reiterated that its easing cycle was nearing its end.

"Any further easing is likely to be limited and guided by incoming data," the central bank said in a statement following the date.

Core inflation, which excludes volatile food and energy items, also quickened, rising to 2.8 per cent from 2.4 per cent in December.

The main drivers behind the faster‑than‑expected headline figure were higher electricity, water, and housing rental prices, the statistics agency said on Thursday. The index climbed 3.3 per cent, its fastest increase since August 2024.

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