THE Philippines’ headline inflation rate increased to 1.7 percent in September 2025, up from 1.5 percent in August 2025, according to the latest data. This brings the national average inflation rate from January to September 2025 to 1.7 percent.
While higher than the previous month, the September 2025 inflation rate is still lower than the 1.9 percent recorded in September 2024.
The primary drivers of the upward trend in overall inflation were the transport index, which rose to 1.0 percent from a decline of 0.3 percent in August, and the food and non-alcoholic beverages index, which increased to 1.0 percent from 0.9 percent. Restaurants and accommodation services also contributed with a higher annual increment of 2.4 percent.
Food inflation also saw an acceleration, reaching 0.8 percent in September 2025, driven mainly by faster increases in the prices of vegetables, tubers, plantains, cooking bananas, and pulses.
The top three commodity groups contributing to the overall inflation rate were housing, water, electricity, gas and other fuels; food and non-alcoholic beverages; and restaurants and accommodation services. Core inflation, which excludes selected food and energy items, slowed slightly to 2.6 percent in September 2025.
