Palace: Low inflation, economic gains ease burden on poorest Filipinos in 2025
MANILA – Malacañang on Sunday said the Marcos administration has effectively cushioned the country’s poorest families from rising living costs by maintaining low inflation and sustaining economic growth throughout 2025.
Government data showed inflation averaged 1.6 percent from January to November 2025, significantly lower than the 3.4 percent recorded in 2024. This continues the downward trend from 5.8 percent in 2022 and 6.0 percent in 2023.
Executive Secretary Ralph Recto said the sharp decline in inflation reflects decisive government measures to stabilize prices, ensure food security, and preserve the purchasing power of households, particularly low-income families whose spending is largely devoted to rice.
“To put this in perspective, a 6 percent inflation rate means that PHP100 can buy only about PHP94 worth of goods and services. With inflation down to just 1.6 percent in 2025, that same PHP100 can now buy around PHP98.40 worth of goods and services,” Recto said.
He stressed that lower inflation is especially critical for disadvantaged sectors. “That is why this is very important for every Filipino family, especially the poor. When inflation is low, basic necessities—particularly food—remain affordable,” Recto added.
Rice prices have continued to decline following President Ferdinand R. Marcos Jr.’s directive for the Department of Agriculture to reduce prices to PHP20 per kilo, nearly half the average cost in 2022.
As a result, inflation for households in the bottom 30 percent income bracket dropped to -0.2 percent in November 2025, marking the sixth straight month of contraction. Malacañang said this highlights the direct benefits of price stabilization efforts on the most vulnerable sectors.
The country’s low and stable inflation environment has also gained international recognition. S&P Global Ratings recently reaffirmed the Philippines’ ‘BBB+’ high investment-grade rating with a Positive Outlook, citing confidence in the government’s economic management.
Officials said lower prices, combined with a robust labor market, are expected to strengthen domestic consumption. Meanwhile, easing inflation provides the Bangko Sentral ng Pilipinas greater flexibility to recalibrate interest rates to further support economic activity.
Multilateral institutions remain optimistic about the country’s outlook. The Asian Development Bank projects 5 percent gross domestic product (GDP) growth for 2025, while both the World Bank and the International Monetary Fund forecast 5.1 percent growth.
The Philippines’ projected expansion exceeds the average growth of advanced economies at 1.6 percent and the 4.2 percent average growth of ASEAN-5 countries this year.
Looking ahead, the IMF projects that by 2026 the Philippines will be the fastest-growing economy in ASEAN, tied with Vietnam at 5.6 percent.
NPO News Team | PNA-PR
