Inflation rate in the Philippines and what it does to your retirement

Prices in the Philippines rose 7.2% in the year to September 2026, according to the Philippine Statistics Authority (PSA). In August 2026 it was 6.1%, and a year earlier 1.7%. The average for January to September 2026 was 5.4%. The PSA released the figure on 6 October 2026; we read it on PSA OpenSTAT on 20 October 2026. See the PSA release for September 2026.

For comparison, the Bangko Sentral ng Pilipinas (BSP) aims for inflation of 3.0% a year, plus or minus 1 percentage point, for 2026 to 2028. The PSA publishes a new figure each month, so if the release date above is more than a month old, check the PSA for a newer one.

The last 12 months

Headline inflation, year on year, from PSA OpenSTAT:

October 2025

1.7%

November 2025

1.5%

December 2025

1.8%

January 2026

2.0%

February 2026

2.4%

March 2026

4.1%

April 2026

7.2%

May 2026

6.8%

June 2026

6.4%

July 2026

6.2%

August 2026

6.1%

September 2026

7.2%

What moved

The PSA breaks the figure down by what people buy. For September 2026, compared with a year earlier:

Food and non-alcoholic drinks

6.7% (a year ago 1.0%)

Housing, water, electricity, gas and other fuels

8.4% (a year ago 2.1%)

Transport

14.6% (a year ago 1.0%)

Restaurants and accommodation

7.0% (a year ago 2.4%)

Health

5.6% (a year ago 2.8%)

Education

1.7% (a year ago 3.0%)

Food has the largest weight in the index, because it takes the biggest share of what families spend. In the PSA’s 2025 Family Income and Expenditure Survey, food and non-alcoholic drinks were 33.3% of the average family’s spending.

Prices differ by region

The PSA also publishes inflation for each region. For September 2026:

NCR (Metro Manila)

5.4%

CAR (Cordillera)

8.2%

Region I (Ilocos)

6.4%

Region II (Cagayan Valley)

7.2%

Region III (Central Luzon)

7.6%

Region IV-A (CALABARZON)

7.2%

MIMAROPA

5.9%

Region V (Bicol)

8.6%

Region VI (Western Visayas)

9.2%

Negros Island Region

6.9%

Region VII (Central Visayas)

8.3%

Region VIII (Eastern Visayas)

8.2%

Region IX (Zamboanga Peninsula)

7.7%

Region X (Northern Mindanao)

6.6%

Region XI (Davao)

8.7%

Region XII (SOCCSKSARGEN)

7.9%

Caraga

9.0%

BARMM

9.7%

A high regional rate means prices there rose faster over the year. It does not tell you whether living there costs more overall. To compare the cost of living between regions, see the cost of living in the Philippines.

What it does to retirement savings

The same life costs more each year. As an illustration only, here is a budget of PHP 30,000 a month in today’s prices if prices kept rising at 7.2% a year, the latest PSA rate:

Today

PHP 30,000

In 10 years

PHP 60,127

In 20 years

PHP 120,508

In 30 years

PHP 241,527

The figures are simple arithmetic and make no forecast. Inflation was 1.7% on average in 2025 and 7.2% in September 2026, so a single month’s rate held for 30 years overstates or understates what will happen. Try a few rates to see the range.

How the retirement calculator uses inflation

The OFW retirement calculator grows your monthly spend from today to your retirement year at an inflation rate you can change. The box starts at 5.4%, the PSA’s average for January to September 2026, and shows the latest PSA figure beside it. Change it to test a lower or higher rate.

Keeping up with rising prices

• Raise what you save as your income rises. A fixed monthly saving buys less each year.
• Know the real return of what you hold. Money earning less than inflation loses buying power, even when the balance grows. Our guide to saving and investing explains the options in general terms.
• Review your plan each year, with the latest PSA figure. See the guide to retirement planning at 40 for catching up when prices have run ahead of your savings.

We do not name products or promise that any of them will keep up with inflation.