Central BanksMedium•14 October 2026•
1 min read
Philippine Central Bank Models El Niño Scenarios as Inflation Hits 3-Year High
Key Facts
1The Philippine central bank is running policy scenarios for a severe El Niño alongside an oil price shock.
2Inflation in the Philippines has reached a three-year high.
The Philippine central bank is running policy scenarios for a severe El Niño alongside an oil price shock. Reuters reported that inflation in the Philippines has reached a three-year high, complicating the central bank's efforts to anchor price expectations.
The central bank is adjusting its models to account for the impact of extreme weather on agricultural output and global oil price volatility. These measures aim to address rising food and energy costs that are driving headline inflation to multi-year peaks.