BSP projects Jan inflation 2.5-3.3%, cites oil, food price hikes

Inflation may settle between 2.5 and 3.3 percent in January, according to projections from the Bangko Sentral ng Pilipinas (BSP) on Friday.

Higher oil prices, increased food costs due to recent weather disturbances, and annual adjustments in water rates and sin taxes are cited as factors driving inflation upwards.

Offsetting these upward pressures are lower rice and electricity prices, which may help moderate the increase.

The government aims to keep inflation within 2 to 4 percent in 2025, with the BSP having already cut interest rates last year amid slowing inflation trends.

Official January inflation figures will be released by the Philippine Statistics Authority on February 5.