The Bangko Sentral ng Pilipinas (BSP) expects inflation in October 2025 to remain modest, projecting it to fall within the 1.4 percent to 2.2 percent range. The central bank said rising prices of rice, fish, vegetables, and electricity, along with the weaker peso, may add upward pressure on consumer prices. However, these could be partly offset by cheaper oil, meat, and fruits.
Increases in food and transport costs were cited as main inflation drivers in September, based on data from the Philippine Statistics Authority.
In September, inflation edged up to 1.7 percent from 1.5 percent in August, still below market forecasts and the BSP’s target midpoint. The increase was driven mainly by faster food price growth and a rebound in transport costs, while other major spending categories remained largely stable.
The BSP said it will closely monitor domestic and global developments that could affect inflation and economic growth, emphasizing its data-driven approach to monetary policy decisions.
Despite the recent uptick, inflation remains well below the BSP’s target range, suggesting no immediate pressure for policy tightening, analysts said.
