19 articles
Economists expect September inflation between 6.4 and 7.4 percent as typhoon-hit food supply, costlier fuel and a sliding peso compound — while the BSP's public position remains that it is watching.
Oil industry sources say pump prices were set to climb sharply this week on tight global crude and shipping markets tied to Saudi-Houthi tensions — wiping out a rollback from three weeks earlier, with no word yet from the Department of Energy on relief for hard-hit drivers.
BSP data show June cash remittances rose just 1.7% year-on-year — the weakest growth since February 2022 — as analysts point to Middle East geopolitical uncertainty and elevated living costs abroad, even as inflation at home stayed above target for a fourth straight month.
The Philippine Statistics Authority's July reading, released August 5, marks a third consecutive month of cooling prices after inflation hit a three-year high in April, but the year-to-date average of 5.0% remains well above the government's 2%-4% target band.
The Bangko Sentral ng Pilipinas raised its key policy rate by 25 basis points to 4.75% on June 18, citing "strong inflationary pressures" from high global oil and fertilizer prices tied to the Middle East conflict — and raised its 2026 inflation forecast to 6.4% — as the benchmark PSEi slipped to 6,135.35 the next day on expectations of higher yields.
Philippine headline inflation slowed to 6.8% in May from a three-year high of 7.2% in April, but it remains far above the central bank's 2–4% target as the US–Iran war keeps oil prices elevated, the peso trades near record lows, and the OECD warns the BSP may have to keep tightening — a squeeze with direct consequences for household budgets and the cost of government borrowing.
With the 30-day price ceiling under Executive Order 118 lapsing, the Department of Agriculture is recommending a one-month extension, citing rice inflation that hit 15.6% in May and low world prices — though the final call rests with the National Price Coordinating Council and President Marcos, and enforcement remains uneven outside Metro Manila.
The Department of Agriculture is pushing to extend by 30 days the ₱50-per-kilo ceiling on imported rice set under Executive Order 118, which lapses June 13, citing persistent inflation and drought risks in supplier countries Thailand, Vietnam and India — even as Metro Manila compliance has climbed past 80% but nationwide enforcement remains uneven.
Fitch Ratings has cut its outlook on Philippine banks to "deteriorating" from "neutral" and S&P Global Ratings expects lenders to absorb credit losses of about 1% to 1.2% of total loans, as the country's heavy reliance on Gulf oil leaves its banking system exposed to a drawn-out US-Iran conflict — with bad loans already at their highest ratio since August 2025.
The Philippine Statistics Authority reported on June 5 that headline inflation slowed to 6.8% in May 2026 — lower than the BSP's forecast range of 7.1% to 7.9% and down from April's 7.2% — driven by a sharp deceleration in transport and fuel prices, though the five-month average of 4.5% remains above the government's 2–4% target band and food inflation persists at 5.8%.
