In a statement Monday night, the regulator said this expected decline is driven by lower prices of key food items such as rice, meat, and vegetables, as well as decreasing domestic oil prices and the appreciation of the peso.
These factors are anticipated to offset rising costs in fish, fruits, and electricity.
The BSP also pointed out that the lower inflation projection is aided by negative base effects, meaning the latest prices are being compared to high levels recorded in the previous year.
In response to these developments, the BSP said its policy making Monetary Board will maintain a cautious stance in managing monetary policy to ensure price stability, while fostering sustainable economic growth.
The lower inflation outlook comes amid broader efforts to stabilize the Philippine economy, with the BSP balancing between addressing inflationary pressures and promoting economic growth.
The Philippine Statistics Authority will release the official inflation rate for September on Friday, October 4.
