BSP Warns of Higher Inflation if Oil Prices Remain Above $100

The Bangko Sentral ng Pilipinas (BSP) has warned that sustained oil prices above $100 per barrel could drive up inflation to 6.6 percent next year, according to its August Monetary Policy Report.

In a higher oil-price assumption of $110 per barrel, the BSP estimated that inflation could climb to seven percent in 2027.

The scenarios assume oil prices remain at those levels starting September and capture only their direct effects, excluding subsequent wage and price adjustments that could spread the pressure across the economy.