Manila: Headline inflation may edge up but is expected to stay within target this year and in 2027, economists said Tuesday.

According to Philippines News Agency, Rizal Commercial Banking Corporation chief economist Michael Ricafort noted that higher farmgate prices of palay could push up rice prices, which account for about 9 percent of the consumer price index. Despite this, he anticipates inflation to average between 3.5 to 3.7 percent this year, aligning with the Bangko Sentral ng Pilipinas' target range of 2 to 4 percent. Looking ahead to 2027, Ricafort predicts inflation will likely ease to between 3 to 3.5 percent.

SM Investments Corp. economist Robert Dan Roces echoed this sentiment, stating that he expects inflation to remain within target for the full year and next year. Speaking on the sidelines of the Makati Business Club Business-Government forum in Makati City, Roces described the inflation situation as "managed."

Inflation increased to 2 percent in January from 1.8 percent in December 2025, driven by rising electricity, housing, and fuel costs. Officials have indicated that measures are in place to ensure an adequate food supply, including staples like rice and meat, to maintain manageable inflation levels.