Philippines faces 7.8% inflation as growth weakens
The central bank is assessing weak demand and the wider effects of supply shocks while targeting inflation of 3% by 2028.
Philippine inflation hit 7.8% in October, a three-year high, while economic growth eased to 2.1% for the third quarter of 2026. Higher energy and transport costs drove the price increases.
In a November 12 statement, the Bangko Sentral ng Pilipinas (BSP) said its efforts to lower inflation take account of weak aggregate demand. It is also examining the secondary effects of global supply shocks and the danger of declining public trust.
The BSP's benchmark interest rate has increased by 125 basis points during 2026. That includes an October increase of 50 basis points, as the bank seeks to restore inflation to its 3% target by 2028.
The bank said rebuilding confidence requires stable prices and restored purchasing power. It would look for falling inflation, steadier expectations about prices, improved sentiment among businesses and consumers, and renewed investment and employment.
December 17 is the date of the year's final Monetary Board meeting. The BSP's last monetary policy report will follow on December 23.
