Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. said Wednesday inflation is expected to hover around 3 percent over the next two years, aligning with the bank’s target range.
The BSP expects inflation to settle at 3.2 percent in 2026 and 3.0 percent in 2027 based on the Dec. 11 policy meeting of the Monetary Board.
Remolona said during a Management Association of the Philippines (MAP) economic briefing that while 3 percent is the target, the bank maintains a tolerance band of 1 percent on either side.
“We project that [inflation] will hover around 3 percent over the next two years. Three percent is our target. Then we have a tolerance band around three percent, which is one percent on each side,” Remolona said.
He said he is less concerned about inflation dipping below the 3 percent target than he is about prices exceeding it.
“I don’t mind too much if inflation falls below 3 percent. I worry more when it goes up beyond 3 percent,” Remolona said.
Inflation picked up to 2.0 percent in January 2026, an 11-month high since price movements reached 2.1 percent in February 2025.
