Cost of Living

BSP considers stronger monetary response to elevated inflation expectations

The Bangko Sentral ng Pilipinas indicated it may implement stronger monetary policy measures if elevated inflation expectations become entrenched, vowing to take necessary action to return inflation to its 3% target following a 25 basis point rate increase in April. The Philippines is experiencing "slowflation" with slowing economic growth of 2.8% in Q1 2026 while inflation accelerated to 7.2% in April, driven by oil price shocks from the Middle East conflict and elevated domestic energy costs despite excise tax suspensions.