MANILA -- The Bangko Sentral ng Pilipinas (BSP) said it expects inflation to settle within the 2.2 to 3 percent range in February.

The BSP said higher electricity and oil prices, as well as the higher prices of fish and meat, may drive inflation upward.

However, it noted that lower rice, fruit, and vegetable prices may help keep inflation low. 

The BSP also said base effects may contribute to easing inflation numbers.

Inflation was at 2.9 percent in January, as Price increases quickened for food and non-alcoholic beverages, alcoholic drinks and tobacco, while transport costs also went up.

In a February press conference, National Statistician Claire Dennis Mapa said the hike in pork prices may have been due to African swine fever in certain parts of the Philippines.

The BSP kept key interest rates steady in its first policy meeting of 2025, despite inflation staying within the government's target of 2 to 4 percent.

BSP Governor Eli Remolona said the central bank needs time to recalibrate its models amid "uncertainty" in the world economy, particularly in trade policies.

Slowing inflation allowed the BSP to reduce interest rates by a cumulative 75 basis points last year. BSP Governor Eli Remolona has said that they are looking at another 50 bps of rate reductions this year.