The Bangko Sentral ng Pilipinas (BSP) said inflation is expected to settle well within the government’s 2 percent to 4 percent target range until 2027.

The BSP made the statement on Friday after the Philippine Statistics Authority reported that last month’s headline inflation settled at 1.4 percent.

“The June 2025 inflation outturn is within the BSP’s forecast range of 1.1 to 1.9 percent,” it said.

The BSP said inflation is projected to remain below the lower end of the target in 2025, primarily due to the continued easing of rice prices.

It noted, however, that this could be partly offset by the recent spike in oil prices.

For 2026 and 2027, inflation is expected to settle within the 2 percent to 4 percent target range.

“Global economic activity is showing signs of deceleration, influenced by uncertainty over US trade policy and ongoing geopolitical conflict in the Middle East. These developments may contribute to slower domestic growth,” the BSP said.

“On balance, a more accommodative monetary policy stance is warranted. Emerging risks to inflation from rising geopolitical tensions and external policy uncertainty will require closer monitoring, alongside the continued assessment of the impact of prior monetary policy adjustments.”

The BSP assured that it would continue to safeguard price stability by ensuring that monetary policy settings are conducive to sustainable economic growth and employment. (PNA)