BSP flags emerging risks amid rising prices

The Bangko Sentral ng Pilipinas (BSP) remains on guard against upside risks to inflation as the August headline print accelerated to 1.5 percent, but overall price pressures are expected to remain manageable.

- By KEISHA TA-ASAN

In a statement, the BSP said inflation last month fell within its one to 1.8 percent projection range, with rice prices continuing to ease.

The central bank expects inflation this year to settle below the low end of the two to four percent target before trending higher in 2026 and 2027, though still firmly within the target range.

The BSP flagged possible electricity rate adjustments and higher rice tariffs as factors that could add pressure over the policy horizon.

"Emerging risks will continue to require close monitoring. The Monetary Board will determine the monetary policy response based on the evolving outlook for inflation and growth," the BSP said.