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Higher power rates, weak peso may stoke inflation this year: BSP

9 January 2026
in Business
Reading Time: 3 mins read
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Higher power rates, weak peso may stoke inflation this year: BSP
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HIGHER electricity costs, base effects, and a weakening peso could push Philippine inflation back within the Bangko Sentral ng Pilipinas’ (BSP) 2%-4% target band this year.

“Inflation is projected to settle within the target range in 2026 and 2027 after a subdued inflation environment in 2025,” the BSP said in its Monetary Policy Report for December 2025.

The central bank expects the consumer price index (CPI) to average 3.2% this year and 3% in 2027.

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