BSP sees December 2025 inflation at 1.2%–2.0%

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December 29, 2025 | 3:05pm

MANILA, Philippines — Headline inflation likely remained subdued in December, with price growth expected to fall within the lower end of the government’s target range, the Bangko Sentral ng Pilipinas said.

In a statement Monday, December 29, the BSP said inflation for the last month of 2025 is projected to settle between 1.2% and 2.0%, amid offsetting price pressures from food, fuel and utilities.

“Upward price pressures may come from increased prices of major food items due to the lingering effects of adverse weather and strong holiday demand, as well as higher LPG and gasoline prices,” the BSP said.

These pressures, however, may be tempered by lower electricity rates in areas served by Meralco, along with declining kerosene and diesel prices.

The BSP said it will continue to monitor domestic and global developments affecting inflation and economic growth.

What came before. Inflation in November slowed to 1.5%, down from 1.7% in October, remaining well below the central bank’s 2%–4% target range.

Earlier this month, on December 11, the BSP cut policy rates by 25 basis points, bringing the target reverse repurchase rate down to 4.50% from 4.75%.

The BSP said the inflation outlook remains favorable, with expectations still well-anchored, even as its forecasts for 2026 and 2027 edged higher to 3.2% and 3.0%, respectively.