By Tracy Cabrera
MALATE, Manila — With inflation hitting 7.2 percent in the latest reading, Senator Sherwin Gatchalian has raised concern over the sharp rise in prices of basic goods, driven largely by surging global oil costs and tensions in the Middle East.
Speaking at a media forum held at the historic Café Adriatico in Malate, Manila, the Senate economic affairs committee chair warned that continued volatility could trigger further inflationary pressures and weigh down economic growth.
Citing data from March and April, Gatchalian pointed to rising global prices of oil and coal, which have led to successive weekly increases in domestic fuel costs.
He said escalating conflict in the Middle East could push inflation higher—potentially to between 4.5 and 4.8 percent if oil reaches US$140 per barrel—and drag down GDP growth.
“(Our) GDP could drop to 3.5 percent and inflation could reach 8.6 percent if prices continue to surge,” he said, stressing the need for urgent measures to ease the burden on household budgets, including policies that would boost the take-home pay of middle-income workers.
The senator also called for stronger government intervention, including subsidies for the poorest families, transport workers, and micro, small, and medium enterprises (MSMEs).
He likewise urged the Department of Agriculture (DA) and the Department of Trade and Industry (DTI) to closely monitor prices of basic goods to prevent possible abuse.
Gatchalian also questioned why domestic fuel price rollbacks have not reflected the sharp declines in global Brent crude prices, suggesting possible profiteering in the market.
He expressed support for the President’s declaration of a state of national energy emergency, calling it a necessary response to the crisis. He also pushed for extending incentives for electric vehicles to reduce reliance on imported oil, while noting that wider EV adoption remains limited due to infrastructure gaps.
ia/xf
