MANILA – Domestic inflation is expected to rise to between 3.1 and 3.9 percent in March, the Bangko Sentral ng Pilipinas (BSP) said Tuesday, as higher fuel prices push up the cost of other goods and services.
This is a sharp increase from February’s 2.4-percent inflation, with the average for the first two months of the year reaching 2.2 percent.
“Upward price pressures from rising petroleum prices, rice costs, electricity rates in Meralco-serviced areas, and peso depreciation have intensified inflation risks,” the BSP said.
The central bank added that falling prices for vegetables, fish, and meat may help dampen some of these pressures. Nonetheless, officials warned that overall inflation risks remain significant.
“The BSP will continue to monitor economic indicators closely, particularly inflation and growth data. Global developments, including tensions in the Middle East, will also be watched for their potential economic impact,” the statement said.
In an off-cycle policy review last week, the Monetary Board raised its inflation outlook for the year, now projecting it could reach 5.1 percent—up from the previous estimate of 3.6 percent and exceeding the government’s 2 to 4 percent target.
For 2027, inflation is expected to average 3.8 percent, above the earlier forecast of 3.2 percent.
ia/xf
