Manila: The Bangko Sentral ng Pilipinas (BSP) announced that inflation is anticipated to remain within the government's 2 percent to 4 percent target range until 2027. This statement follows the recent report from the Philippine Statistics Authority, which revealed that last month's headline inflation was at 1.4 percent.

According to Philippines News Agency, the BSP stated that the June 2025 inflation outcome aligns with its forecast range of 1.1 to 1.9 percent. The central bank attributed this expectation to the ongoing decrease in rice prices, which is projected to keep inflation below the lower end of the target in 2025. However, this trend could be partially counteracted by the recent increase in oil prices.

For the years 2026 and 2027, the BSP expects inflation to remain within the 2 percent to 4 percent target range. The central bank noted that global economic activity is showing signs of slowing down due to uncertainties surrounding US trade policy and geopolitical conflicts in the Middle East. These factors could potentially lead to slower domestic economic growth.

The BSP emphasized the importance of maintaining an accommodative monetary policy stance, considering emerging risks to inflation from rising geopolitical tensions and external policy uncertainties. The central bank underscored the need for ongoing monitoring of these risks, alongside evaluating the impact of previous monetary policy adjustments. The BSP reassured its commitment to safeguarding price stability by ensuring monetary policy settings support sustainable economic growth and employment.