MANILA – The Bangko Sentral ng Pilipinas (BSP) expects inflation in March 2026 to settle within the range of 3.1 percent to 3.9 percent, citing increasing price pressures driven by several domestic factors.

In a statement, the central bank said inflation risks have intensified due to higher domestic petroleum prices, rising rice costs, increased electricity rates in areas serviced by Meralco, and the depreciation of the peso.

Despite these upward pressures, the BSP noted that lower prices of vegetables, fish, and meat could help ease overall inflation. However, it emphasized that risks to the upside remain and require close monitoring.

The BSP said it will continue to stay vigilant and base its policy decisions on incoming data, particularly on inflation trends and economic growth outlook.

It also noted that developments in the Middle East will be closely watched for their potential impact on inflation and overall economic activity.