With the inflation rate in the country continuing to decline in February 2025, the government has committed to maintaining its proactive measures to ensure sufficient food supplies in the near term while gradually enhancing agricultural productivity, as stated by the National Economic and Development Authority (NEDA).
The Philippine Statistics Authority (PSA) announced today (March 5) that the headline inflation rate dropped to 2.1 percent in February, down from 2.9 percent in January 2025. This marks the lowest level since September 2024, when it was recorded at 1.9 percent. The decrease was attributed to a slowdown in both food inflation (2.6% from 4.0%) and non-food inflation (1.7% from 2.2%).
Significantly, rice experienced a more pronounced deflation of -4.9% compared to -2.3%, with prices declining on a month-to-month basis since July 2024 due to falling international prices and lower tariffs. Vegetable inflation also slowed to 7.1 percent from 21.1 percent the previous month, which helped counterbalance the increase in meat inflation (8.8% from 6.4%).
Inflation for the lowest 30 percent of the population decreased to 1.5% in February 2025, which is lower than the overall inflation rate and down from 2.4% in January.
“The government will continue its efforts to keep inflation low and manageable to safeguard the purchasing power of Filipinos. With the expectation of six to 13 typhoons developing from March to August 2025, the Department of Agriculture (DA) will execute the La Niña action plan to restore agricultural productivity in areas likely to be impacted by heavy rainfall, flooding, and landslides,” said NEDA Secretary Arsenio M. Balisacan.
“The action plan encompasses water management, financial aid and credit support, along with a comprehensive information campaign regarding La Niña,” he added.
In addition, to alleviate the effects of rising fuel prices on farmers, the DA has launched the Fuel Assistance to Farmers Project. As of January 28, 2025, 74.3 percent of the targeted beneficiaries for 2023 have received fuel assistance cards, while 54.1 percent of the targeted beneficiaries for 2024 have been processed for funding.
Furthermore, President Ferdinand R. Marcos Jr. signed Executive Order (EO) No. 83 on February 13, 2025,granting real property tax relief to independent power producers operating under Build-Operate-Transfer contracts with government-owned or – controlled corporations. The EO eased the financial burden on IPPs, and helped ensure a stable electricity supply.
In the livestock industry, measures to address the ASF are being accelerated. The Inter-Agency Committee on Inflation and Market Outlook and the Economic Development Group advised the DA-Bureau of Animal Industry to speed up the collection of post-vaccination results from 28 hog farms and quickly submit the analysis to the Food and Drug Administration. This will help accelerate product registration for the commercial use of the African Swine Fever vaccine.
For the medium term, the Department of Science and Technology has funded the Brisk Response through In-location Diagnostics and Genomic Sequencing System for Animal Disease Testing and Vaccine Research Project, which is expected to be completed in August 2026.
“The downward trend in headline inflation indicates that our efforts to combat inflationary pressures are working. However, we will not be complacent in addressing causes of commodity price increases, particularly for food, to help uplift the lives of poor and vulnerable Filipino families, especially,” said Balisacan. #
