BSP, DEPDev see stable inflation as ‘reforms’ advance

By Francis Allan L. Angelo

The Bangko Sentral ng Pilipinas (BSP) announced that October 2025 inflation fell within its forecast range of 1.4 to 2.2 percent, reinforcing expectations of subdued price pressures in the near term.

Inflation is projected to average below the lower end of the BSP’s target range this year, mainly due to recent declines in rice prices.

For 2026 and 2027, inflation is forecast to settle within the 3.0% ± 1.0 percentage point range, with expectations remaining well-anchored despite potential risks.

“Potential electricity rate adjustments and higher rice import tariffs could exert some upward pressure, but global commodity prices are stabilizing,” the BSP said in a statement.

The BSP’s Monetary Board also noted that domestic growth prospects have weakened due to business confidence concerns linked to public infrastructure governance and external uncertainties.

The Board committed to continually reassess the effects of prior monetary actions in light of new economic data and evolving risks to inflation and growth.

Separately, the Philippine Statistics Authority (PSA) reported on November 5 that headline inflation held steady at 1.7 percent in October, unchanged from September 2025.

National food inflation slowed to 0.3 percent year-on-year in October from 0.8 percent in September and 3.0 percent in October 2024.

This deceleration was driven by a reduced annual increase in vegetable prices, down to 16.6 percent from 19.4 percent the previous month.

Meat inflation also eased to 5.2 percent in October from 6.0 percent in September, helping stabilize overall food costs.

“The steady headline inflation rate shows that our coordinated interventions are helping to maintain adequate supplies and keeping essential goods affordable,” said Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio M. Balisacan.

“We remain vigilant in managing risks from weather disturbances, global market volatility, and other domestic factors that may affect prices in the coming months,” he added.

To cushion weather impacts, the Department of Agriculture (DA) has authorized vegetable imports and is investing in long-term supply chain improvements, including rice-processing plants and farm-to-market roads.

A PHP 20-billion Animal Competitiveness Enhancement Fund under the new Animal Industry Development and Competitiveness Act will further support livestock productivity and disease control.

Meanwhile, the Department of Energy (DOE) is fast-tracking electric vehicle adoption by expanding charging infrastructure and promoting renewable energy integration.

The DOE’s partnership with the Government of Japan will also pilot renewable energy projects and policy exchanges to support a more diverse and resilient energy mix.

President Ferdinand R. Marcos Jr. recently signed Executive Orders No. 100 and 101 to boost food security and agricultural productivity.

EO No. 100 sets a floor price for palay to ensure fair returns for farmers during periods of low prices or oversupply.

EO No. 101 mandates full implementation of the Sagip Saka Act (Republic Act No. 11321), expanding market access, financing, and training for farmers and fisherfolk.

“DEPDev welcomes the issuance of Executive Orders No. 100 and 101 as crucial interventions for food security,” Balisacan said.

“These policies help ensure fair returns for our farmers and fisherfolk, thus encouraging domestic production,” he added.

Balisacan said the Marcos Administration is committed to long-term reforms that improve agricultural productivity and economic resilience.

“We are strengthening our supply chains, improving production efficiency, and investing in systems that make our economy more resilient to shocks,” he said.

“These efforts are essential to protecting the purchasing power of Filipinos and ensuring that the benefits of macroeconomic stability translate into sustained growth and job creation.”