Philippines Inflation Rate in line with Central Bank's Estimated Target

Philippine annual inflation amplified in December for the third following month, as reported by the statistics office, due to the higher rates of food and electricity costs. For the first time since 2021, the Philippines has achieved its inflation target, as average inflation for 2024 is recorded at 3.2%, at ease within the central bank's annual range of 2%–4%.

In December, the consumer price index (CPI) rose by 2.9%, exceeding the 2.6% rise from the month before. As per the sources.

"On balance, the within-target inflation outlook and well-anchored inflation expectations continue to support the BSP’s shift toward less restrictive monetary policy," the Bangko Sentral ng Pilipinas (BSP) said in a statement.

Core inflation rose from 2.5% in November to 2.8% in December, apart from unstable food and energy prices. Along with dropping its main interest rate by 25 basis points to 5.75 percent last month—the third consecutive cut—the Bangko Sentral ng Pilipinas (BSP) cautioned that further reduction this year could occur in "baby steps" due to ongoing inflation concerns.

In December, most of the 24 analysts expected that the rate would decrease by another 25 basis points every quarter over the next nine months, arriving at 5.00 percent by the conclusion of September 2025. According to the sources.

"Looking ahead, the Monetary Board will maintain a measured approach to monetary policy easing to ensure price stability conducive to sustainable economic growth and employment," the BSP said.