BSP sees February inflation between 2.2% and 3%

The Bangko Sentral ng Pilipinas (BSP) forecasts February inflation to be between 2.2% and 3%, a potential decrease from January's 2.9%.

A BusinessWorld poll of 18 analysts yielded a median estimate of 2.6% for the February consumer price index (CPI), aligning with the BSP's forecast.

If realized, February inflation would be the lowest monthly print in four months, slower than the 2.9% in January and the 3.4% in the same month in 2023.

The BSP noted that upward price pressures for the month include higher electricity rates and oil prices, and an increase in the prices of fish and meat.

However, these were likely offset by lower prices of rice, fruits, and vegetables, as well as negative base effects.

Softer gasoline and diesel prices, weaker US dollar, easing electricity and rice prices will act as an offset to broad food prices from a year ago, according to UnionBank's chief economist.

The Philippine Statistics Authority is scheduled to release February inflation data on Wednesday (March 5).