Malacañang Palace on Thursday said the country’s current inflation rate remains within the government’s outlook through 2027.

This was among the key points discussed when Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. met with Ferdinand R. Marcos Jr. at Malacañang Palace on Tuesday to review the central bank’s recent interest rate cuts and the broader macroeconomic outlook for 2026.

“Patuloy na nananatiling mababa at kontrolado ang antas ng headline inflation at inflation para sa pinakamababang 30% ng income household sa bansa. Nananatiling kontrolado ng pamahalaan ang mga posibleng panganib sa inflation outlook at inaasahang pasok pa rin sa itinakdang target na antas nito sa taong 2026 at 2027,” Palace press briefer Undersecretary Claire Castro said on Thursday.

(“Headline inflation and inflation for the lowest 30% of income households in the country continue to remain low and under control. The government remains mindful of potential risks to the inflation outlook and is expected to remain within its target levels in 2026 and 2027.”)

Castro said production has been affected by weak market confidence, “but the economy is expected to gradually recover starting in the second quarter of 2026 to 2027.”

“However, growth challenges remain more severe, especially if investor and consumer confidence recover more slowly,” she added.

The Philippine Statistics Authority reported on 6 January that headline inflation rose to 1.8 percent in December 2025 from 1.5 percent in November.

Asked about rising prices in wet markets, Castro said the Palace would seek a report from Agriculture Secretary Francisco Tiu Laurel Jr., noting insufficient data on agricultural commodity prices.

Earlier, the World Bank projected the country’s economic growth to recover over the next two years, citing stronger private consumption if inflation stays low, employment remains robust, and monetary easing supports spending and investment. It also expects investments to pick up as infrastructure projects resume and business reforms take effect.

Peso depreciation

On currency movements, Castro said the peso’s depreciation reflects trade and financial imbalances seen across Asia, alongside global pressures from a strong US dollar and delayed interest rate cuts by the US Federal Reserve.

On Wednesday, the Bankers Association of the Philippines reported that the peso rebounded to P59.261 against the dollar, gaining 19.4 centavos from Tuesday’s close.

Castro added that the President does not want the peso to hit the P60-per-dollar level, stressing that the BSP continues to closely monitor exchange rate movements.