Consumer price growth likely remained elevated in May, with inflation expected to stay above 7 percent as rising food costs and a weaker peso continued to pressure household spending, according to the Bangko Sentral ng Pilipinas (BSP).

The central bank projected May inflation to settle between 7.1 percent and 7.9 percent, suggesting that price pressures remained intense after inflation accelerated sharply to 7.2 percent in April from 4.1 percent a month earlier.

Food prices emerged as the main source of concern, with higher costs of rice, vegetables and meat expected to drive consumer prices higher during the month. The BSP also cited the depreciation of the peso as an additional factor that increased the cost of imported goods and other products dependent on foreign inputs.

“The BSP projects May 2026 inflation to settle within the range of 7.1 to 7.9 percent. Upside price pressures were driven by rising prices for rice, vegetables, and meat, as well as the depreciation of the peso,” the BSP said in its month-ahead inflation forecast.

The projected inflation range indicates that price growth likely remained well above the government’s target, extending concerns over the impact of rising living costs on consumers and businesses.

The BSP noted that some factors helped moderate inflationary pressures during the month.

“The recent rollbacks in domestic fuel prices, lower prices for fish, and slightly lower electricity rates partially offset the prevailing upside price pressures,” it said.

April’s inflation rate exceeded the BSP’s earlier forecast and was largely attributed to faster increases in food and transport costs. The spike came amid global oil market volatility linked to tensions in the Middle East, which raised transportation and logistics expenses and contributed to broader price increases across the economy.

The latest inflation outlook suggests that food supply conditions and currency movements remain key risks to price stability, even as lower fuel and utility costs provide temporary relief.