‘Government kept inflation under control’

MANILA, Philippines — The Marcos administration managed to keep inflation under control and protect the purchasing power of Filipino households this year, Malacañang said yesterday, as it expressed optimism about the country’s economic prospects.

In a statement, the office of Executive Secretary Ralph Recto said inflation, defined as the rate at which prices of basic goods and services increase as measured by the consumer price index, was cut by more than half from 3.4 percent in 2024 to just 1.6 percent from January to November this year.

The slowdown sustains a downward trend since President Marcos assumed office, from 5.8 percent in 2022 and 6.0 percent the following year, the statement added.

“President Ferdinand R. Marcos, Jr.’s administration has protected the poorest Filipino families by keeping inflation under control and the economy on a strong growth path in 2025,” it said.

Recto explained that six percent inflation means that P100 can purchase only about P94 worth of goods and services. With inflation down to 1.6 percent this year, that same amount can now buy about P98.4 worth of goods and services, he added.

“So this is really important to every Filipino family, especially the poor. If inflation is low, we keep the basic goods, especially goods, affordable,” Recto said.

The statement cited the government’s effort to bring down rice prices to P20 per kilo, a campaign promise of Marcos during the 2022 presidential race.

This led to inflation for the bottom 30 percent income households falling to -0.2 percent last November, the sixth consecutive month of contraction and a development that showed how price stabilization efforts are directly benefiting the most vulnerable, it added.

According to the statement, the Philippines’ low and stable inflation environment has been cited as a key strength by S&P Global Ratings, which recently reaffirmed the country’s ‘BBB+’ high investment-grade rating with a positive outlook.