INFLATION in the Philippines accelerated to 2.4 percent in February 2026, up from two percent in January, driven largely by higher food and utility costs, according to the Philippine Statistics Authority (PSA) on Thursday, March 5, 2026.
Among regions, Central Visayas recorded the highest inflation rate at six percent, marking the seventh consecutive month it posted the fastest price increases nationwide.
The region’s inflation was largely driven by rising food prices, with food and non-alcoholic beverages increasing to 9.3 percent in February from 8.2 percent in January. Price increases also accelerated in restaurants and accommodation services to 9.7 percent from 9.1 percent, reflecting higher costs in dining and hospitality.
Other commodity groups that recorded faster price growth included alcoholic beverages and tobacco (5.3 percent from 4.8 percent), housing, water, electricity, gas and other fuels (4.1 percent from 3.1 percent), furnishings and household maintenance (5.6 percent from 2.8 percent), and recreation, sport and culture (four percent from 1.5 percent).
Inflation for health services remained steady at 3.1 percent, while information and communication stayed unchanged at 0.9 percent. Education services also held at 2.6 percent.
Meanwhile, transport prices posted a sharper decline of 1.7 percent in February, reversing the 2.2 percent increase recorded in January, helping moderate overall price pressures in the region.
PH inflation
The country’s 2.4 percent February inflation, is within the Bangko Sentral ng Pilipinas’ (BSP) forecast range of 2.3 to 3.1 percent for the month. The BSP said average inflation in January to February stood at 2.2 percent, below the BSP’s target of three percent for the full year, but within the tolerance range of ±1.0 percentage point around the target.
The PSA said the increase in headline inflation was mainly driven by faster price increases in food and non-alcoholic beverages, which rose 1.8 percent in February from 1.1 percent in January.
Housing and utilities, food, and restaurants accounted for the largest contributions to the February inflation rate.
Food inflation nationwide also accelerated to 1.6 percent from 0.7 percent in January, although it remained below the 2.6 percent recorded a year earlier.
The rise in food prices was largely attributed to a slower decline in rice prices, which fell 3.4 percent year-on-year compared with the steeper 8.5 percent drop in January, as well as higher price increases in corn, fish and seafood, vegetables, fruits, and dairy products.
Core inflation, which excludes selected food and energy items, also edged higher to 2.9 percent in February from 2.8 percent in January, indicating persistent underlying price pressures.
Across regions, areas outside the National Capital Region posted inflation of 2.5 percent, while Metro Manila’s inflation remained steady at 1.9 percent in February.
Middle East conflict
In a statement, the Department of Economy, Planning, and Development (DEPDev) said the February 2026 inflation still falls within the government’s two to four percent inflation target for 2026 and 2027.
Depdev Secretary Arsenio Balisacan attributed the elevated inflation to the increasing conflict in the Middle East.
He vowed that the government’s mitigating measures, which include the possible lifting of excise taxes on petroleum products if global oil prices breach US$80 per barrel to address upside inflation pressures, will continue.
“Further, the government will implement measures to reduce fuel consumption, first by government offices, and we encourage the private sector to do the same. These measures include the use of shuttle buses, encouraging car-pooling, as well as implementing flexible work arrangements such as work-from-home and compressed workweeks,” Balisacan said.
He said the government is also aiming to implement long-term strategies to reduce demand for imported oil by incentivizing renewable energy and alternative fuels, promoting active transport, and strengthening energy conservation programs.
“We are ready to deploy timely and targeted interventions should external shocks intensify. Our priority is to protect vulnerable households, support affected industries, and sustain the country’s growth momentum amid global uncertainties,” he added. / KOC/ TPM