Manila: Upticks in food prices due to weather conditions and holiday demand, as well as higher prices of liquified petroleum gas and gasoline, are seen to result in between 1.2 and 2 percent inflation for the Philippines for December 2025. In a statement Monday, the central bank said these factors are seen to be partly countered by the drop in power rates in areas being serviced by the Manila Electric Company (Meralco).

According to Philippines News Agency, the rate of price increases last November slowed to 1.5 percent from the previous month's 1.7 percent, which authorities traced to adequate food supply due to various measures put in place by the government. This brought the 11-month average to 1.6 percent, below the central bank's 2-4 percent target band.

During the rate-setting meeting of the BSP's policy-making Monetary Board (MB) last December 11, the Board projected inflation to remain benign and expectations to remain firmly anchored, with a 3.2 percent and 3 percent average for 2026 and 2027, respectively.

The central bank emphasized that it will continue to monitor domestic and international developments affecting the outlook for inflation and growth in line with its data-dependent approach to monetary policy.