Inflation could have picked up at the start of the year, the Bangko Sentral ng Pilipinas (BSP) said late on Friday, possibly hitting the 1.4- to 2.2-percent range but staying within the 2.0- to 4.0-percent target.
Consumer price growth rose to 1.8 percent in December, within the central bank’s 1.2- to 2.0-percent forecast for that month. Data for January will be released by the Philippine Statistics Authority this coming Thursday, Feb. 5.
“Upward price pressures may stem from higher prices of major food items such as rice and fish, increased domestic fuel costs, the annual adjustment in excise taxes for alcohol and tobacco, higher water and toll rates, as well as the peso depreciation,” the BSP said in a statement.
“These pressures could be partly offset by lower electricity charges in Meralco-serviced areas and stabilizing vegetable prices,” it added.
The result will figure in the BSP’s first policy meeting for 2026 on Feb. 19. Many analysts expect the central bank to again cut key interest rates to support economic growth, which slumped to 4.4 percent last year from 5.7 percent in 2025.
“The BSP will continue to monitor domestic and international developments affecting the outlook for inflation and growth in line with its data-dependent approach to monetary policy,” the central bank said.
