MANILA -- Inflation may settle between 2.5 to 3.3 percent in January, the Bangko Sentral ng Pilipinas (BSP) said Friday.

In a statement, the BSP said higher oil, food, and water prices may have driven costs upward, along with adjustments in sin taxes.

The central bank said food prices may have remained high because of lingering effects of recent weather disturbances.

Lower rice prices and electricity rates, however, may have helped tame inflation.

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Philippine inflation quickened in December to 2.9 percent as power rates and housing costs climbed. Food inflation stayed at 3.5 percent in December 2024, lower than the 5.5 percent seen in December 2023.

Inflation quickens in December but full-year rate stays within target

Pump prices dipped in the last week of January after three consecutive weeks of oil price increases.

PH oil prices dip before end-January

The government still hopes to keep inflation within 2 to 4 percent in 2025. The BSP cut interest rates by 75 basis points last year amid slowing inflation, and more rate cuts are expected this year.

The state statistics bureau will announce the January inflation figures on February 5, Wednesday.