MANILA – Rising global oil prices driven by the Middle East conflict have prompted the Philippine government to prepare measures to keep inflation under control, the Department of Economy, Planning, and Development (DEPDev) announced Thursday.
According to the Philippine Statistics Authority (PSA), headline inflation rose to 2.4 percent in February, up from 2 percent in January, bringing the year-to-date average to 2.2 percent—within the government’s 2-4 percent target for 2026.
National Statistician Dennis Mapa highlighted that food prices were the main driver of the increase. Rice prices declined more slowly, while fish costs rose amid a shellfish ban caused by red tide alerts. Non-food items such as housing rentals and electricity also saw faster price increases. Meanwhile, costs in information and communication fell slightly, and transport expenses declined.
The Bangko Sentral ng Pilipinas (BSP) described the inflation outlook as manageable, though forecasts for 2026 have nudged up to 3.6 percent due to supply pressures. Inflation is expected to settle around 3.2 percent in 2027.
DEPDev Secretary Arsenio Balisacan said the government is monitoring both international developments and domestic commodity supplies closely. If global oil prices exceed USD 80 per barrel, lifting excise taxes on petroleum products may be considered.
Other measures include reducing fuel use in government offices, encouraging private-sector cooperation through carpooling and shuttle services, and adopting flexible work setups like work-from-home arrangements. Long-term initiatives aim to lower reliance on imported oil through renewable energy adoption, alternative fuels, and energy conservation programs.
“Our focus is to shield vulnerable households, support industries, and ensure steady growth despite external shocks,” Balisacan said.
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