The Philippines headline consumer price index (CPI) rose 2% on year in January, up from a 1.8% on-year rise in December, but still at the lower end of the Philippine central bank inflation target, according to figures released by the Philippine Statistics Authority (PSA) on Friday.

The nation's core CPI, that strips out certain food and energy bills, rose 2.8% on year in January, up from a 2.4% on-year increase in December, added the PSA.

The nation's central bank, Bangko Sentral ng Pilipinas (BSP) has maintained an inflation target band of 2% to 4% for 2026, unchanged from 2025.

In August, in its most-recent projection, the Philippine central bank estimated the nation's inflation rate will register in the "3%, plus or minus 1%, range in 2026 and 2027."

In January, Philippine consumers paid more for housing and utilities, up 3.3% on year, reported the PSA. The restaurants and accommodation services index rose by 4% in the same time frame.

Somewhat in contrast, food and non-alcoholic beverages bills in January rose a modest 1.1% on year.

Like many other nations, the Philippines experienced higher inflation rates during, and in the aftermath, of the pandemic era. The nation's CPI rose 8.7% on year in January of 2023, which marked the crest.

In response to higher inflation, the Bangko Sentral ng Pilipinas raised its key policy interest rate, in stages, from 2.00% in 2022 to a peak of 6.50% in 2024.

In late 2024, with inflation easing, the central bank began cutting the key rates, which it reduced to 4.50% in December of last year.

The Bangko Sentral ng Pilipinas will next meet on April 10 to set monetary policy.