Inflation in the Philippines is expected to remain manageable in February 2026, with the Bangko Sentral ng Pilipinas (Bangko Sentral ng Pilipinas) projecting headline inflation to settle within the 2.3 to 3.1 percent range. The outlook suggests that while price pressures are emerging in key areas, broader conditions remain consistent with the central bank’s price stability objectives.
The BSP noted that upward pressures could come from higher prices of staple food items such as rice and fish, alongside elevated domestic petroleum prices. Electricity rates are also seen as a potential source of inflation, particularly in areas serviced by Manila Electric Co. (Meralco), where power charges have increased amid changing generation costs.
These inflationary drivers, however, are expected to be partially offset by easing prices of vegetables, fruits, and meat, which have benefited from improved supply conditions. The central bank also pointed to the appreciation of the peso as a moderating factor, helping dampen imported inflation and reduce pressure on consumer prices.
Despite the mixed signals, the BSP emphasized that inflation remains within its target range and does not currently pose a threat to macroeconomic stability.
The central bank said it will continue to closely monitor both domestic developments and global trends to ensure that its monetary policy stance remains aligned with the goal of maintaining price stability while supporting sustainable economic growth and employment.
The February outlook reinforces expectations that inflation dynamics will remain broadly balanced in the near term, giving policymakers room to stay measured as they navigate evolving risks in food, energy, and currency markets.
