THE Bangko Sentral ng Pilipinas (BSP) projects that headline inflation for September 2026 will settle within a range of 6.4 to 7.4 percent, driven primarily by supply-side pressures across food and energy categories.
Adverse weather conditions have pushed up prices of vegetables, fish, rice, and fruits, while elevated domestic petroleum prices and the recent depreciation of the peso are also expected to contribute to faster price increases during the month. These upward forces are anticipated to be partially tempered by lower meat prices and reduced electricity rates, which should ease some cost burdens on households.
The BSP noted that external and geopolitical developments remain critical variables in the outlook, particularly ongoing tensions in the Middle East and their potential impact on global oil markets, as well as recent weather disturbances affecting domestic agricultural production.
Both factors introduce uncertainty about the persistence of price pressures and the speed at which inflation can return to target. The central bank emphasized that it remains data-dependent and will continue to monitor incoming economic indicators alongside evolving risks to both inflation and growth prospects.
The latest forecast suggests inflation remains above the government’s preferred 2–4 percent band, underscoring the need for continued vigilance.
Monetary authorities reiterated their commitment to deploying appropriate policy tools as needed to anchor expectations and ensure price stability, balancing the need to contain price increases with support for economic activity. A final official inflation figure from the Philippine Statistics Authority is expected in the coming days.
metrosundaily
