Upticks in food prices due to weather conditions and increased holiday demand, along with higher prices of liquefied petroleum gas and gasoline, are expected to result in inflation of between 1.2 and 2 percent in the Philippines in December 2025.
In a statement issued Monday, the Bangko Sentral ng Pilipinas (BSP) said these price pressures are expected to be partly offset by lower power rates in areas serviced by the Manila Electric Company (Meralco).
Inflation slowed to 1.5 percent in November from 1.7 percent in October, which authorities attributed to adequate food supply following various government measures.
This brought the 11-month average inflation rate to 1.6 percent, below the central bank’s 2–4 percent target range.
During the rate-setting meeting of the BSP’s policy-making Monetary Board (MB) on Dec. 11, the Board projected inflation to remain benign and expectations to stay firmly anchored, with average rates of 3.2 percent in 2026 and 3 percent in 2027.
“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 statement added.
PNA PHOTO