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Economy
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Inflation Update: Highlighting the need to ease
Headline inflation slowed in November, providing ample room for the central bank to continue cutting interest rates to support the economy.
December 5, 2025
By Metrobank Research
By Metrobank Research
Philippine headline inflation decelerated to 1.5% year-on-year (YoY) in November. Year-to-date inflation also decelerated to 1.6%, sitting below the Bangko Sentral ng Pilipinas’ (BSP) 2.0%-4.0% full year target.
Key points
- Core inflation, which excludes volatile food and energy items, decelerated to 2.4% from 2.5% in October.
- Food and non-alcoholic beverages led the downtrend due to slower inflation in vegetables and persisting rice inflation.
- Housing, water, electricity, gas, and other fuels remained the biggest contributor to headline inflation.
What’s next
- Metrobank expects full-year headline inflation to fall below the BSP’s target range of 2.0%-4.0%.
- Below-target inflation further boosts expectations of more rate cuts by the BSP to boost demand and support growth.
(Disclaimer: This is general investment information only and does not constitute an offer or guarantee, with all investment decisions made at your own risk. The bank takes no responsibility for any potential losses.)
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