The Bangko Sentral ng Pilipinas said on Saturday it would focus on inflationary expectations instead of the US Federal Reserve’s latest policy move when the Monetary Board meets on 16 February to decide on key rates.

“Next meeting, (we) will focus on Inflationary expectations in (the Philippines), not the (Fed’s) 25 (basis points) rate increase,” BSP Governor Felipe Medalla told the reporters in a Viber message.

The country’s inflation rate hit 8.1 percent in December last year as food prices remained high. The Philippine Statistics Agency is expected to release inflation data on 7 February.

On Tuesday, BSP projected the January 2023 inflation to settle within 7.5 to 8.3 percent due to several factors.

The central bank said surging price pressures for January this year are expected to stem from higher domestic petroleum prices, an uptick in the costs of essential food items, and the annual increase in sin taxes, higher electricity rates, and approved water rate rebasing.

However, the price pressures for the month could be offset by the decline in liquefied petroleum gas prices and peso appreciation.

“The BSP will continue to adjust its monetary policy stance at the necessary pace to prevent the further broadening of price pressures and monitor emerging price developments closely (following) the BSP’s price stability mandate,” the central bank said.

Medalla said inflation in the Philippines would likely decline to below four percent by the third quarter this year and two percent by early next year as aggressive supply -side interventions take hold.