The Bangko Sentral ng Pilipinas (BSP) said headline inflation may climb to as high as 7.9 percent in May 2026, driven by rising prices of key food items and a weaker peso.
In its month-ahead forecast issued Saturday, the central bank projected inflation to settle between 7.1 percent and 7.9 percent, citing continued price pressures on rice, vegetables, and meat as the main drivers.
The BSP also pointed to the depreciation of the Philippine peso as an additional factor contributing to higher consumer prices, noting that exchange rate movements tend to increase import costs.
“These factors were expected to exert significant pressure on consumer prices,” the BSP said.
Despite the upward trend, the central bank said some relief came from lower fuel prices, reduced fish costs, and slightly lower electricity rates, which helped temper overall inflation.
Inflation accelerated to 7.2 percent in April, sharply higher than the 4.1 percent recorded in March and above the BSP’s earlier forecast range of 5.6 to 6.4 percent. The spike was largely attributed to rising food and transport costs amid global oil volatility linked to tensions in the Middle East.
The BSP said it will continue monitoring price developments as part of its mandate to maintain price stability.
