Philippine inflation likely settled within a range of 3.1 percent to 3.9 percent in March on the back of higher domestic fuel prices and increased electricity costs, the Bangko Sentral ng Pilipinas said Tuesday.
The BSP said in its month-ahead forecast that inflation risks have intensified. It pointed to upward price pressures originating from a significant spike in domestic petroleum prices amid escalating tensions in the Middle East, alongside higher utility charges in areas serviced by Manila Electric Co.
Beyond energy costs, the BSP noted that higher rice prices and the persistent weakness of the peso likely contributed to a higher consumer price index during the month. While lower prices for vegetables, fish and meat may provide some relief, the central bank maintained that upside pressures require close monitoring.
“The BSP will remain vigilant and guided by incoming data, specifically on inflation and growth prospects. We will continue to monitor recent developments in the Middle East for their implications on inflation and economic activity,” the BSP said.
The forecast follows a rise in the national inflation rate to 2.4 percent in February, which marked a 13-month high and brought the two-month average to 2.2 percent.
According to Philippine Statistics Authority (PSA) data, that previous uptick was led by rising costs for food and housing.
The PSA is scheduled to release the official inflation data for March on April 7 2026.
