The Philippines' annual inflation held steady at 2.9% in January, unchanged from December, but slightly above the 2.8% recorded a year earlier, data from the Philippine Statistics Authority (PSA) showed on Monday.

Food and non-alcoholic beverages saw inflation accelerate to 3.8% from 3.4% in December, while alcohol and tobacco inflation climbed to 3.5% from 3.1%. Transport costs edged up to 1.1% from 0.9%.

Housing and utilities inflation eased to 2.2% from 2.9%, while price increases for clothing and footwear slowed to 2.3% from 2.4%.

Food inflation rose to 4.0% from 3.5% in December, driven by a 21.1% surge in vegetable prices, up from a 14.2% increase the previous month. Meat and fish prices also contributed, rising 6.4% and 3.3%, respectively.

Food accounted for 50.3% of overall inflation, followed by housing and utilities at 16.5%, and restaurants and accommodation services at 10.8%.

The inflation report comes as the Bangko Sentral ng Pilipinas (BSP) signals a cautious approach to monetary easing. With inflation within the central bank's 2% to 4% target range, policymakers are weighing a potential 25 basis point rate cut at their Feb. 13 meeting.

BSP Governor Eli Remolona has indicated the possibility of at least 50 basis points of easing this year, aiming to support an economy that grew 5.2% in the fourth quarter, missing expectations.