MANILA – The Bangko Sentral ng Pilipinas (BSP) said headline inflation is projected to settle within the range of 2.5 to 3.3 percent in January this year.

"Upward price pressures in January stem from the rise in petroleum prices, increased prices of major food items owing to the lingering effects of recent weather disturbances, as well as the annual adjustments in water rates and sin taxes," the BSP said in a statement on Friday.

The central bank, however, said these upward price pressures are expected to be offset in part by lower prices of rice and electricity rates.

"Going forward, the Monetary Board will continue to take a measured approach in ensuring price stability conducive to balanced and sustainable growth of the economy and employment," the BSP said.

Headline inflation settled at 2.9 percent in December last year, bringing the 2024 average inflation rate to 3.2 percent.

January 2025 inflation data will be released by the Philippine Statistics Authority on Feb. 5. (PNA)