Aris Dacanay of HSBC Global Investment Research said in a report that the Philippines' higher-than-expected consumer inflation data for December is not expected to disrupt the country's central bank's monetary policy easing cycle. The ASEAN economist said that the overall CPI rose 1.8%, which exceeded market expectations, but was not universal. Dacanay said inflation in December was driven by a sharp rise in food prices due to weather conditions. He said, “Even though the data is better than expected, overall inflation is still relatively moderate. The average inflation rate for the full year of 2025 is expected to be 1.7%, which is lower than the Bank of the Philippines target range of 2%-4%. “HSBC expects the Bank of the Philippines to cut interest rates by another 25 basis points in the first quarter.

Aris Dacanay of HSBC Global Investment Research said in a report that the Philippines' higher-than-expected consumer inflation data for December is not expected to disrupt the country's central bank's monetary policy easing cycle. The ASEAN economist said that the overall CPI rose 1.8%, which exceeded market expectations, but was not universal. Dacanay said inflation in December was driven by a sharp rise in food prices due to weather conditions. He said, “Even though the data is better than expected, overall inflation is still relatively moderate. The average inflation rate for the full year of 2025 is expected to be 1.7%, which is lower than the Bank of the Philippines target range of 2%-4%. “HSBC expects the Bank of the Philippines to cut interest rates by another 25 basis points in the first quarter.