“While holiday spending is a definite factor in the elevated inflation print, food prices have remained stable. “Hence, I expect full-year inflation to just settle at 1.6 percent, far below the two to four percent inflation target of the central bank.”Erece said this environment supports a more accommodative monetary stance. “Despite these measures, 2026 inflation is likely to still remain within targets, barring any shocks and externalities.”UnionBank chief economist Ruben Carlo Asuncion sees even softer inflation in December, estimating headline inflation at 1.2 percent year-on-year. Jonathan Ravelas, senior adviser at professional services firm Reyes Tacandong & Co., also expects inflation to slow, placing December inflation at 1.1 percent year-on-year. “We expect 2026 inflation to average at 3.3 percent,” he said, adding that monetary easing is still likely.
