Philippine inflation slows more than expected in November

Inflation in the Philippines eased more than expected in November due to a decline in food prices, the statistics agency said on Friday, giving the central bank policy room to maneuver.

The consumer price index rose 1.5% in November from a year earlier, below the previous month’s 1.7% rise and a 1.6% median forecast in a Reuters poll.

That brought the year-to-date average to 1.6%, below the central bank’s target of 2% to 4%.

Core inflation, which excludes volatile food and energy prices, also slowed to 2.4% from 2.5% in October.

Last month’s slower inflation, driven by a 0.3% decline in food prices, may give the central bank flexibility when it reviews its policy on December 11.

Bangko Sentral ng Pilipinas Governor Eli Remolona said on December 3 that the odds for another interest rate cut next week were higher with growth this year likely to settle between 4% and 5%, below a 5.5% to 6.5% target.

“The outlook for domestic economic growth has weakened,” the central bank said in a statement on Friday following the inflation data’s release.

“This outlook reflects in part the impact on business confidence of governance concerns about public infrastructure spending as well as lingering uncertainty from the external environment.”

The BSP has cut its policy rate at its past four meetings, taking it to a three-year low of 4.75%.

Press Release on November 2025 Seasonally Adjusted CPI_s3m9l.pdf

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Source: Business World

PHL monthly full-time wage averages P21,544

The average monthly wage of time-rated, full-time workers in the Philippines was P21,544 in 2024, according to the Occupational Wages Survey released by the Philippine Statistics Authority this week.

The survey, covering formal establishments with at least 10 workers, found that the national average basic pay was P20,309, with monthly cash allowances of P1,235.

Information and Communications Technology (ICT) posted the highest average monthly wage of P43,676, followed by Professional, Scientific, and Technical Activities at P36,096, and Electricity, Gas, Steam, and Air Conditioning Supply at P35,188. The Agriculture, Forestry, and Fishing sector had the lowest average wage of P14,615. In terms of basic pay, ICT led with P40,931, while Agriculture was at the bottom with P14,191.

Workers in the National Capital Region (NCR) were paid the highest average monthly wage of  P29,310, including the highest basic pay at P27,318 and the highest average allowance at P1,992. Calabarzon workers followed with P19,711, and the Central Visayas with P19,084.

Meanwhile, the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) recorded the lowest wage levels, with an average monthly wage of P11,495 and basic pay of P11,169. Also among the regions, the Cagayan Valley paid out lowest average allowance at P304.

The Electricity, Gas, Steam, and Air Conditioning Supply industry offered the highest average monthly allowance of P4,127, followed by Professional, Scientific, and Technical Activities with P3,543 and ICT P2,745. The Agriculture, Forestry, and Fishing sector had the lowest average allowance of P424.

Nationally, female workers earned an average of P22,236, exceeding the P21,009 pay of their male counterparts, resulting in a national gender wage gap of minus 5.8% in favor of women. Eleven of 17 regions also showed higher wages for female workers, with the largest gaps in Davao at minus 16.5%, the Western Visayas at minus 11.7%, and the NCR at minus 10.3%.

Some regions, including Calabarzon at 6.3%, Cordillera Administrative Region at 5.7%, and Ilocos at 4.7%, reported higher wages for men.

The highest-paying occupations included aircraft pilots and associate professionals in Air Transport (P137,999), air traffic safety electronics technicians (P131,536), and chemical engineers in the Manufacture of Coke and Refined Petroleum Products (P101,996).

Other top roles, such as actuaries, applications programmers, web and multimedia developers, software developers, and industrial engineers, earned between P65,806 and P99,154.

General office clerks averaged P19,721 and elementary occupations P13,506. The NCR reported the highest wages for both groups, while BARMM had the lowest.

Clerks earned most in Electricity, Gas, Steam, and Air Conditioning Supply, ICT, and Administrative and Support Service Activities, while elementary workers earned most in Electricity, Gas, Steam, and Air Conditioning Supply, ICT, and Water Supply; Sewerage, Waste Management, and Remediation Activities.

Lackluster GDP to impede property’s recovery

The third quarter gross domestic product (GDP) growth of the Philippines was a disappointing 4% — due mainly to tempered household consumption as well as constricted government infrastructure spending. The third quarter (Q3) 2025 GDP growth was the weakest quarterly economic expansion recorded since the third quarter of 2011, a period that also saw slower spending due to corruption allegations involving public projects.

While Q3 is historically a slow quarter, the sharp slowdown was worse than what economists projected. Average GDP growth for 9M 2025 is now at 5%, even lower than the 5.5% to 6.5% estimate of the country’s economic managers. Hence, it is no longer surprising to see credit rating agencies and multilateral aid agencies also downgrading their growth forecast for the Philippines for 2025.

Colliers Philippines is still hoping for a strong finish for the property sector. Fourth quarter is traditionally a strong period for retail spending due to higher remittances and disbursement of holiday bonuses for public and private sector employees.

Greater purchasing power supported by attractive ready for occupancy (RFO) promos should also help lift demand for residential units, especially mid-income (P3.6 million to P12 million a unit) condominiums primarily targeted by developers’ “renter to owner” schemes.

The office market has so far surpassed initial projections for 2025, but stakeholders are on the lookout for anti-outsourcing measures that might impede the Philippine business process outsourcing (BPO) sector’s growth beyond 2025.

SLOWEST QUARTERLY GROWTH SINCE Q3 2011

In Q3 2025, the Philippine economy expanded by 4%, the slowest since the 3.8% contraction in Q3 2011. As of 9M 2025, average GDP reached 5%, lower than the government’s full year target of between 5.5% and 6.5%. The country remains one of the fastest growing economies in Southeast Asia in 9M 2025, next to Vietnam’s 7.7%.

Steady GDP expansion is essential for the country to generate decent jobs and ensure growth in individual incomes. Improving workers’ purchasing power is crucial in fueling residential demand.

CENTRAL BANK EASES RATES FURTHER, INFLATION HOLDS STEADY

The Bangko Sentral ng Pilipinas (BSP) or central bank cut its policy rate for the fourth straight meeting, reducing the benchmark rate by another 25-basis points (bps) to 4.75% in October, the lowest since September 2022.

The central bank noted that inflation outlook remains within the target range of 2% to 4% but highlighted the weaker economic outlook and the decline in business confidence as key reasons for further rate cuts.

Since August 2024, the central bank has cut a total of 175 bps.

Inflation reached 1.7% in October 2025, an easing from 2.3% a year ago. As of 10M 2025, average inflation reached 1.7%, below the government’s 2%-4% target range.

SHIFTING GEARS BEYOND 2025

The office and residential markets are now starting to move sideways in the property cycle. With substantial correction in office rents at the height of the pandemic, Colliers is hopeful that recent tailwinds in the office market will result in gradual recovery in lease rates within and outside Metro Manila.

It appears that property developers have finally accepted what needs to be done to revive the Metro Manila vertical market, especially the mid-income segment which is now the focal point of developers’ RFO promos. The retail segment continues its aggressive recovery post-covid, with strong absorption and limited new retail space resulting in drop in vacancy and rise in rents.

The Q3 results point to a need for massive pump-priming from the government. Continued slowdown in government’s infrastructure program will likely result in a Philippine economy grinding to a halt — so it is crucial that private personal consumption expenditures in Q4 are supported by ramped up public sector spending.

With the current market dynamics, it’s obvious that the Philippine economy and property are still moving, but not sprinting. Until we see sweeping governance reforms and an eventual return of private investor confidence, we’re bound to see property opportunities not exactly shouting, but whispering.

Source: Business World