Lower rice prices are seen to help ensure the rate of price increases in the Philippines will remain manageable until 2027, with the figure expected to stay within the Bangko Sentral ng Pilipinas’ (BSP) 2-4 percent target band.

On Wednesday, the Philippine Statistics Authority (PSA) reported an unchanged inflation rate for October 2027 at 1.7 percent relative to the previous month, which is lower than year-ago rate of 2.3 percent.

Average inflation in the first 10 months this year stood at 1.7 percent, and BSP, in a statement, said the forecast is for the full-year average to be at “the low end of the target range” largely because of the easing prices.

“The outlook for inflation is generally benign, remaining well within the target range over the policy horizon. For 2026 and 2027, inflation is expected to settle within the 3.0% ± 1.0 ppt target range,” the BSP statement on Wednesday read.

BSP said “inflation expectations also remain well-anchored.”

“Potential electricity rate adjustments and possible increases in tariffs on rice imports could add some upward pressures. Nonetheless, the risks to the inflation outlook are limited as price pressures are expected to ease amid stabilizing global commodity prices,” it noted.

The statement noted the BSP’s policy-making Monetary Board has “noted that the outlook for domestic economic growth has weakened.”

This outlook, it said, “reflects in part the impact on business confidence of governance concerns about public infrastructure spending.”

“Indications of slowing demand also reflect lingering uncertainty from the external environment,” it said.

“Going forward, the Monetary Board will continue to review newly available information and reassess the impact of prior monetary actions in light of evolving economic conditions and their implications for inflation and growth,” it added. (PNA)