Inflation seen at 3.7% in January

Inflation is expected to have increased in January due to higher fuel and meat prices, leading to an estimated rate of 3.6-4.1%, with a median projection of 3.7%. This would be the fastest inflation since February 2019.

The Bangko Sentral ng Pilipinas (BSP) projects that these factors will contribute to upward price pressures but could be offset by stable rice prices and lower fish and vegetable prices, as well as a stronger peso.

With inflation nearing the upper end of the BSP's target range of 2-4%, there may be less room for further interest rate cuts, prompting policies to support households struggling with rising basic goods costs.