Aggregate trend inflation in the Philippines is measured and analyzed by estimating an unobserved components model, using aggregate and disaggregated Consumer Price Index (CPI) inflation data from 1995–2023. Estimates from the trend inflation models indicated that trend inflation has declined, on average, and has become less volatile since the early 2000s, coinciding with the adoption of the inflation targeting framework for monetary policy. Periods with significantly large fluctuations in observed inflation generally coincided with episodes of increased volatility of shocks to both the trend and transitory components of inflation. Decomposing the estimated trend and the volatility of its shocks revealed larger fluctuations in and more volatile shocks to the sector-specific trend inflation component. These findings suggest that movements in aggregate trend inflation were driven more by sector-specific factors rather than generalized price increases associated with aggregate demand. The use of disaggregated CPI inflation data did not necessarily result in more precise trend inflation estimates compared to those based on aggregate inflation measures. Nevertheless, the width of the posterior intervals from the multivariate trend inflation has remained relatively narrow at around half a percentage point. Trend inflation estimates based on disaggregated CPI inflation data outperformed the forecasts based on aggregate inflation measures in short-term inflation forecasting, but not beyond four quarters. Overall, the results of the study highlight the benefits of employing a multivariate trend model approach on disaggregated CPI inflation data as an additional tool for analyzing aggregate inflation dynamics.