The Bangko Sentral ng Pilipinas (BSP) announced Friday that inflation for January 2026 is expected to settle within the range of 1.4 to 2.2 percent, driven by rising costs for key food commodities and fuel.
In an advisory, the central bank identified price hikes in rice, fish, and other food items as primary upward pressures for the month.
Other contributing factors include increased domestic fuel costs, the annual excise tax adjustments for alcohol and tobacco, and higher rates for water and tolls.
The BSP also noted that the recent depreciation of the Philippine peso has added further risk to the monthly inflation rate.
However, these inflationary pressures may be tempered by lower electricity charges in areas serviced by Meralco and the stabilization of vegetable prices.
“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 stated.
Current forecasts from monetary officials suggest that the annual inflation rate for 2026 will remain within the government’s target band of 2 to 4 percent.
This follows a 2025 average inflation rate of 1.7 percent, which fell below the target range due to government interventions aimed at stabilizing food supplies and prices.