Vegetables are on display at a market in Quezon City, May 22, 2026. — PHILIPPINE STAR/MIGUEL DE GUZMAN
By Katherine K. Chan, Reporter
THE BANGKO SENTRAL ng Pilipinas (BSP) could extend its tightening cycle as the widening pass-through effects of energy shocks stemming from the Middle East war are expected to keep core inflation elevated, analysts said.
Metropolitan Bank and Trust Co. (Metrobank) Chief Economist Nicholas Antonio T. Mapa said the faster pace of core inflation, despite easing headline inflation, supports the BSP’s hawkish but measured policy stance.
“With headline inflation receding and core inflation heating up, we are witnessing now what the BSP had been warning us about: second-round effects,” Mr. Mapa told BusinessWorld in a Viber message.
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