The Bangko Sentral ng Pilipinas said on Monday it expects December inflation to settle between 1.2 percent and 2.0 percent, with holiday demand and higher prices the main drivers.
The BSP said upward price pressures during the month likely stemmed from the lingering effects of adverse weather on agricultural supplies and a seasonal spike in consumer spending. Higher prices for liquefied petroleum gas and gasoline also contributed to the forecasted range.
It said these increases were likely tempered by lower electricity rates in areas serviced by Manila Electric Co. and a decline in the costs of kerosene and diesel.
The December forecast, with a midpoint of 1.6 percent, follows a period of easing price pressures. The Philippine Statistics Authority reported that headline inflation eased to 1.5 percent in November from 1.7 percent in October, led largely by a drop in rice prices.
The November figure marked a slowdown even as costs for housing, fuel and transport recorded marginal increases.
The BSP said it would maintain a data-dependent approach to its monetary policy. The bank continues to monitor both domestic and international developments to ensure the inflation outlook remains consistent with its long-term growth targets.
The government is scheduled to release the official December consumer price index data in early January.
Inflation averaged 1.6 percent in the first 11 months, below the government’s target range of 2.0 to 4.0 percent for the year.
The BSP on its last Monetary Board meeting on Dec. 11 revised its inflation forecasts upward to 3.2 percent in 2026 and 3.0 percent in 2027.
“The outlook for inflation continues to be benign and inflation expectations remain firmly anchored,” the BSP said in a statement.
