Report: The possibility of a rate hike by the Central Bank of the Philippines in June may still be on the table.

Deepali Bhargava of the Netherlands International Group said in a report that despite the soft inflation data in May, it seems likely that the Philippines central bank will raise interest rates in June. The analyst said that overall inflation has moderated due to a decrease in transportation costs. However, she noted that food inflation continues to drive overall price increases and appears to be spreading beyond rice to other areas. She added that the risk of inflation remains firmly tilted towards the upside as high fertilizer prices weigh on affordability and push up prices of non-rice food items. The Netherlands International Group maintains its forecast for the Philippines consumer inflation rate to average 5.8% year-on-year in 2026. The organization expects a 25 basis point rate hike in June, with a possible 50 basis point increase if the US-Iran conflict does not show clear signs of cooling and oil prices remain high.