Inflation seen staying within target

Inflation expectations remain anchored within the two to four percent target over the medium-term, giving the Bangko Sentral ng Pilipinas (BSP) more room to gradually unwind its tight monetary stance as growth headwinds loom.

- By KEISHA TA-ASAN

Private sector forecasts gathered by the BSP in March pegged inflation at an average of 3.1 percent for 2025, 3.3 percent for 2026 and 3.4 percent for 2027. All estimates are well within the government's two to four percent target range.

"The survey respondents see upside risks from the effect of geopolitical tensions, changes in global trade policies, adverse weather conditions, and upward adjustments in utility rates, transport charges, and minimum wages. Downside risks are still seen from lower rice prices," the BSP said.

The central bank noted that inflation line inflation dropping to below the two percent target in March.