President Ferdinand R. Marcos Jr.’s administration has kept inflation at bay and steered the economy on a strong growth path this year, protecting the poorest Filipino families from rising costs of living. 

Data from the Office of the Executive Secretary showed inflation dropped to just 1.6% from January to November 2025, more than half the 3.4% recorded in 2024. This continues the downward trend since Marcos assumed office, when inflation stood at 5.8% in 2022 and 6.0% in 2023. 

Executive Secretary Ralph G. Recto said the slowdown reflects decisive government action to stabilize prices, secure food supply, and safeguard household purchasing power—particularly for rice, which accounts for the largest share of spending among low-income families. 

“To put this in perspective, a 6% inflation rate means that your PHP 100 can buy only about PHP 94 worth of goods and services. But with inflation down to just 1.6% in 2025, that same PHP 100 can now buy about PHP 98.4 worth of goods and services,” Recto explained. 

“Kaya napakahalaga nito para sa bawat pamilyang Pilipino, lalo na ang mga mahihirap. Kapag mababa ang inflation, napapanatili natin na abot-kaya ang mga pangunahing bilihin, lalo na ang pagkain,” he added. 

Rice prices have also improved, with the Department of Agriculture delivering on Marcos’s directive to bring prices down to PHP 20 per kilo, about half the average price in 2022. 

As a result, inflation for the bottom 30% income households fell to -0.2% in November 2025, marking the sixth consecutive month of contraction and underscoring how price stabilization efforts are directly benefiting vulnerable Filipinos. 

The country’s low and stable inflation environment has been recognized internationally. S&P Global Ratings reaffirmed the Philippines’ ‘BBB+’ high investment-grade rating with a Positive Outlook, citing strong fundamentals and confidence in Marcos’s economic leadership. 

Lower prices, combined with a vibrant labor market, are expected to boost domestic demand and consumption. With inflation easing, the Bangko Sentral ng Pilipinas (BSP) now has greater policy space to recalibrate interest rates, potentially providing further support to household spending and overall economic activity.

Investment prospects remain robust as the administration continues to streamline regulations and attract private sector participation, with new initiatives—particularly in agriculture—set to be announced.

Multilateral institutions also remain optimistic. The Asian Development Bank (ADB) forecasts Philippine GDP growth at 5% in 2025, while both the World Bank and the International Monetary Fund (IMF) project expansion at 5.1%. This outpaces the 1.6% average growth projection of advanced economies, including the United States (2.0%), Japan (1.1%), and the Euro area (1.2%). 

Among ASEAN peers, the Philippines’ projected growth is second only to Vietnam (6.5%), and higher than Indonesia (4.9%), Malaysia (4.5%), Singapore (2.2%), and Thailand (2%). By 2026, the IMF expects the Philippines to tie with Vietnam as the fastest-growing economy in ASEAN at 5.6%.