The government will pursue measures to maintain a manageable inflation rate that supports domestic growth in 2026, Department of Economy, Planning and Development (DEPDev) Secretary Arsenio Balisacan said Tuesday.
This follows inflation averaging 1.7 percent in 2025, below the government’s 2 to 4 percent target range, based on data from the Philippine Statistics Authority.
Inflation in December accelerated to 1.8 percent from 1.5 percent in the previous month, driven by faster price increases in heavily weighted food and non-alcoholic beverages, clothing and footwear, as well as the impact of several cyclones on agricultural products.
Despite the uptick, Balisacan said inflation remained low due to government measures aimed at stabilizing costs and ensuring affordable prices, particularly for lower-income households.
“Despite global headwinds and domestic challenges, the Philippine economy has remained resilient against inflationary pressures due to the government’s timely and targeted interventions,” Balisacan said.
He added that the government will continue prudent fiscal and monetary coordination and advance structural reforms to sustain low inflation and support inclusive growth in 2026 and beyond.
Balisacan also noted that the PHP297.1-billion allocation for the agriculture sector in this year’s national budget is expected to help manage price movements and ease price pressures.
Meanwhile, electricity price concerns will be partly addressed by additional capacity from about 200 power generation projects.
“These policy initiatives are part of our broader efforts to achieve food security, strengthen human capital, and improve the quality and efficiency of public service delivery — priorities that promote inclusive, broad-based growth for all Filipinos,” he said. (PNA)