Story perspectives

Philippines Projects Inflation Below Target Amid Economic Growth

2/1/2026

Summary

Story summary

In January 2026, the Bangko Sentral ng Pilipinas projected inflation to range from 1.4% to 2.2%, driven by rising food and fuel prices.
Analysts identified risks from higher prices for rice, fish, and domestic fuel, though stabilizing vegetable prices may offset some pressures.
The Philippine economy is expected to grow 5% in the first quarter, aided by early budget releases to local government units.
Despite a slowdown in 2025, positive developments in inflation and exports point to a resilient economic outlook.
The inflation rate is projected to remain below the government's 2-4 percent target.

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Story summary

In January 2026, the Bangko Sentral ng Pilipinas projected inflation to range from 1.4% to 2.2%, driven by rising food and fuel prices.
Analysts identified risks from higher prices for rice, fish, and domestic fuel, though stabilizing vegetable prices may offset some pressures.
The Philippine economy is expected to grow 5% in the first quarter, aided by early budget releases to local government units.
Despite a slowdown in 2025, positive developments in inflation and exports point to a resilient economic outlook.
The inflation rate is projected to remain below the government's 2-4 percent target.