At the Development Budget Coordination Committee (DBCC) meeting on December, the DBCC in consultation with the Bangko Sentral ng Pilipinas, decided to retain the current inflation target of 2 ? 4 percent for 2025 ? 2026 and set the same inflation target for 2027 ? 2028.

By announcing a medium-term inflation target, the BSP aims to strengthen its forward-looking approach to monetary policy formulation with the view of helping anchor inflation expectations to the target.

The inflation target range of 2? 4 percent remains an appropriate representation of the medium-term goal for price stability, given the current structure of the Philippine economy and the macroeconomic outlook over the next few years.

Prospects for aggregate demand and supply-side conditions point to a manageable inflation outlook despite upside risks.

Inflation expectations likewise remain anchored to the current inflation target.

The outlook for domestic aggregate demand will be supported by easing monetary conditions, improving labor market dynamics, and continued implementation of investment-enhancing structural reforms.

At the same time, the risk of possible domestic and external shocks will warrant continued close monitoring and proactive intervention measures from the whole of government. Bangko Sentral ng Pilipinas