BSP Projects February Inflation at 2.3-3.1% — Still Within Target Despite Rising Rice, Fish, and Electricity Prices
The Bangko Sentral ng Pilipinas projects February 2026 inflation to settle between 2.3% and 3.1%, comfortably within its 2-4% annual target range. While prices are inching up from January's 2.0%, the central bank says the situation remains manageable — for now.
Upward pressure is coming from rising prices of rice and fish, elevated domestic petroleum prices, and increased electricity charges in Meralco-serviced areas. On the flip side, lower prices of vegetables, fruits, and meat, along with peso appreciation, are providing some offset.
The BSP's Monetary Board had already cut the target reverse repurchase rate by 0.25 percentage points on February 19 — the second rate cut in three months — citing sluggish economic growth. Governor Eli Remolona Jr. noted that while a slight inflation uptick is expected this year, it's 'largely due to supply-side factors' that are temporary.
Metrobank's own forecast aligns at 2.4% for February, driven by food, energy, and rental prices, with rice and onion supply challenges providing only partial relief. The bank expects these pressures to persist in the near term.
The big wildcard, of course, is oil. With the Middle East crisis sending crude prices spiking, the BSP's comfortable inflation range could come under serious pressure in March and beyond — a scenario the central bank is watching 'with continued vigilance.'
Source: Daily Tribune
